America's Recession: The Effect on the World

As the U.S. continues to fall into one of the worst recessions in recent history it has a profound effect on the rest of the world. Each day at the opening of the stock market we wait to see if an event will raise the value of the American dollar or if we will be viewed as one of the strongest nations in the world in need of help.

We once carried the burden for most of the worlds financial successes and gains in businesses from family owned to corporations to technological riches never before seen. Now we are seeing the loss of homes and businesses on the individual front as well as huge financial losses in a market we once lead. But how does it affect the rest of the world?

Our economy has depended on money in the banking and loan industry with high interest for many years. As we continued to build we became a nation living in excess. Loans for homes and business as well as the credit industry permitted many to buy beyond their income and ability to pay so they could present a lifestyle of luxury. With the luxury came the need for more money and more credit to keep financially alive month after month.

Now as loan companies and banks pay out more than an American income can afford they are folding at an alarming rate. As each company folds loans are called in for payment in full or payment adjustment. They can not be paid and the industry collapses under the weight of it's own making. Across the nation we suffer and wait.

Buyers can no longer pay for credit cards and loans and merchandise has long since become saleable. Panic grips the nation of buyers refuse to spend on anything more than day to day living which causes many investors of the past few years to lose the high cost they had hoped to regain and increase with profits. Large firms in this country and overseas lose profits, cannot afford to keep workers and therefore layoff workers or close their doors. Creating the ripple effect of less money to live on and spend.

We are no longer a country of self supporting endeavors. We have become one of the many nations around the world depending on investments and income from sources created, made, packaged and shipped from businesses that sale the goods to us. As one of the largest buyers of goods our country supports many other nations.

Banks such as WaMu are no longer just one institution closing in this county. It will cause the loss of finances and jobs around the world because of hardships and bad decisions. From large corporations to small businesses we are no longer able to bail out others. The time has come when we need the help of other countries with the means to do so, but for so long we have been the money nation that set the bar and now we are failing.

Is the rest of the world effected? Yes, and if they do not help themselves, pay backs loans from the many times they have asked for our help we will sink not only as America, but as a world. The money loss will be felt at the top, but for the individual whose home is lost, to the man and woman no longer working because of layoffs it is our own that suffer. Welfare, unemployment and crime will become the normal path until the country is completely broke. Then one by one each country will fall to their own ruin if they do not help to rebuild America's finances.