Thursday, June 14, 2012

The Recession

“Blame Yourself for The Recession”
by Shaun Rein

This article allows for the reader to reflect on him or herself. Also to help all those finger-pointers to put those pointers down and instead try to think of a solution to help themselves or others. It helps to show that there were individuals who were living beyond their means which probably means they were living off credit cards and surpassing their budgets. In doing so everyone started doing the same thing and in the end were not able to pay for these items anymore and in turn the economy started spiraling down. It seems reasonable enough.

With this article it is very important to understand that although it would be very simple to point the finger at someone for the recession, it must be taken into consideration that the possibility of why this recession has occurred could be everyone's fault.

I agree with this information to a certain extent. Yes, it is understandable that many individuals were living beyond their means via credit cards. They were also purchasing extravagant items and having multiple homes and expensive cars that were out of their budget. However there were those that did not partake in the credit card expenditures and were struggling either way. Now that this recession has hit, many individuals have lost their employment and are unable to provide for their families or themselves. It is easy to point and blame, but looking outside the box and the line of sight of this finger pointing, it is safe to say that a large portion of the economic downturn can be in the boom of the real estate market that hath occurred. Million of individuals purchased homes of five-hundred thousand dollars or more on an average income of 1200 U.S. Dollars. After the refinancing period came along, well you can guess the rest. Who was behind the search for gold in selling homes to individuals that could not afford it? Why was this done? To make an extra penny on an unsellable house in a beach front property with 400 sq. ft. selling for $1,000,000 to be resold at double the price because it was what everyone else was doing? Sadly this was only part of the problem. Much need be said, but this article does not cover everything, but instead ends up pointing more fingers and raising more questions.

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