Did Greed Cause the U.S. Economy to Fall?

The current U.S. economy has fallen and people are wondering how this happened and what caused the economy to fall. One reason the U.S. economy is unstable is because of greed. Banks became too greedy and gave loans to people that couldn't afford them. And consumers became too greedy and bought homes, cars and things on credit cards they couldn't afford.

As a result of this, the stock market is unstable. And the financial news is causing it to increase or decrease whenever something good or bad happens. Several banks are filing for bankruptcy and some banks are being bought by other companies so they can avoid bankruptcy.

One of the main industries that is being affected by the current economy is the real estate industry. So many home buyers were given a chance to own a home through the subprime loans. These loans gave people the false impression that they could afford a home that was out of their price range. But as soon as the rates and payments for the loans increased, these owners began to see that it was a bad idea to have a subprime mortgage. Many homeowners have lost their homes because of this. The subprime loans are one the reasons why so many homes have gone into foreclosure.

Another example of people being greedy in the real estate industry is the home builders. Before the housing market declined, home builders were building so many homes and believed they could make a profit from every home they built. When the housing market declined, home builders realized they built too many homes and they were going to have a hard time selling them. The current economy has forced home builders to cut the prices of their homes and lose profits.

The car industry is another example of an industry that has also been greedy. Several car manufacturers, mainly the U.S. automakers, have ignored the idea of making more fuel efficient cars and have continued to make gas guzzling vehicles. Because of the wrong choices they have made the U.S automakers are losing money.

The current gas prices and the economy have caused many Americans to lose interest in driving or buying large trucks and SUVs. This has caused U.S automakers to close factories and it has also forced them to come up with more fuel efficient cars to manufacture.

The banking industry has also been impacted by greed. One reason why so many banks are struggling is because they have given loans to people who couldn't afford them. The biggest mistake the banks have made was giving subprime loans to people who couldn't afford a home.

Many people who have worked in the real estate, car, and banking industry have lost jobs because of the poor decisions that were made.

One day the U.S. economy will recover from this but it might take a while. Hopefully these companies will not make the same poor decisions again.