Analyzing The Stock Market Crash

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Take a look at newspaper headlines from September to December 2008, one common theme will emerge the stock market crash. At the end of 2007 the national debt was approximately nine trillion dollars. Throughout 2008 companies and banks are becoming nationalized while others are being saved from bankruptcy. By the end of 2008 the national debt increased to ten trillion. Every year after the debt continued to rise. In August 2011 the Americas credit rating downgraded from AAA to AA+ (nifi.org). Also, during 2011 47 percent of the debt was owned by China, Japan, and the United Kingdom (nifi.org). Fast forward to 2014, an estimated seventeen trillion dollars is now the current national debt total. February 10, 2014 congress raises the…show more content…
The interest paid per year increases and could eventually be more than all other spending, making it difficult to be paying off the principle of owed debt. National debt is continuing to rise. To help reduce spending America must create a budget bill, invest in growth first, and agree that sacrifices need to be made now. However, with any issue there are always people who will see problems as opportunities for potential growth; either financial or personal. When looking at creating a budget bill politicians and corporate leaders may say that the only way to make money is to spend money. A budget bill would create career ending cuts in their departments that no company could get over, resulting in a sellout of rival companies. Small towns and neighborhoods could lose the only source of funding in that area. If growth is being invested in now profit margins will decrease because the growth is not immediate causing interest to climb. It risks putting the economy back into a recession by failing to create an immediate profit, increasing the current deficit. Making sacrifices now would cause the older generation to work longer hours, pushing back retirement, taking the jobs for the newer generation. The lack in profit, fewer jobs opening up would create another financial crisis. Creating a solid, loop-hole free budget plan would not create another
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