Is it the return of the Great Depression of 1929 for US?
The article "Is it the return of the Great Depression of 1929 for US?" published on 10th August 2007 is about the economic crisis in the US, that is similar to the Great Depression in 1929.
The Great Depression was the largest and most important economic depression in modern history. The end of the depression in the US is associated with the onset of the war economy of World War II, beginning around 1939. There are some similarities to the economic crisis today. That is why experts suppose that a return of the Great Depression is possible. Today, the European markets took a nosedive, there is no cheap money anymore and the Iraq War and the problems this war causes hit the US economy hard.
written by Nadine M.
Is the American dream coming to an end?
The report 'Is the American dream coming to an end?' published on CNN is about the future of the Americans and their relation to the American Dream in times of financial crisis.
The text states that the Americans notice their bad situation and start to worry about the future of themselves and their children. The income of an average American has declined, so the gap between rich and poor is getting bigger, but the Americans still believe in the American Dream.
We think it is good that the Anericans finally start to worry about their future, because they have to change their way of life and should not believe anymore in the illusion of the American Dream.
Lena V./L.. Sebastian
Is it return of the Great Depression of 1929 for US?
The article ´´Is it return of the Great Depression?´´ published on Friday, August 10 deals with the economic crisis and the problems connected to it.
Some of these problems are the housing crisis, the increase ion the deficit of the past fiscal years, the tightening of credits and the high expenses on the Iraq War. In case cheap money will not keep flowing, people will surely have to deal with higher depths for their own business. This causes many confused people, who wonder how all this could happen.
The reason for this crisis is partly Bush’s fault because he lowered the taxes although he had high costs for the war and for the help given to victims of the hurricane.
Although it seems to be the return of the Great Depression of 1929 the development of the crisis is not predictable because of the reasons given and the high deficit the USA has to deal with at this time.
Christine und Anika
Big disappointment for a lot of citizens in the USA due to the current financial crises!!
Commenting the text "Is the AD coming to an end"; for comprehension also read that text.
I can share a lot of the statements that are mentioned in the text. I am convinced that the American dream is not what it was once, any more. The existence of the visions and ideology of the American dream, that you can achieve erverything by doing hard work, has decreased over the years. I think that there were economical periods in the past when one could have achieved prosperity and became rich and wealthy only through hard work.
At the moment these periods are over. No one knows for how long this sub-prime economic situation influenced by the current financial crisis will last for.
I can understand that so many Americans who have put their money in properties and estates during the last couple of years, are very angry now.
Many banks have presented themselves as institutions that you cannot trust. A big disappointment for many of their clients.
I think the golden years of the American dream are over. An example from the text is that middle class people work more and more for the same earnigngs. In addition the wage gap between rich and poor is getting bigger all the time.
A frightening and alarming development of the western society!
by Marek
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Is it return of the Great Depression of 1929 for US?
The article published on ibnlive.com on Aug 10, 2007 deals with the difficult situation of US economy right now and the possible consequences of it.
Analysts consider the financial crisis right now to maybe even end up in a crisis like in 1929. Especially as the US stock market has to cope with a decreasing trend right now and the economy’s situation does not seem to improve, many investors groups and banks fear the consequences.
One reason for that is the so-called “cheap money” the banks loaned out with low interest rates. Only some banks raised up the interest rates when they understood their financial situation would get worse, which ended up in a big problem. Due to the excess liquidity the banks and markets have to face, a tightening of credit is necessary and more and more people try to not get involved in economy any more.
In my opinion, a crisis like the one in 1929 is a possible consequence of the credit crunch right now. Maybe even in the near future the worst case scenario described in the article could come true and I suppose you really need a new beginning in the field of economy. Through that one might eventually counteract the decreasing trend.
Hopefully the consequences of the crisis right now will not be as horrible as in 1929 and the important politicians of several countries are aware of what can happen. You can see by the text that the investors groups and central banks are the responsible forces for the financial crisis and I cannot understand that nobody had a premonition of the problems that result from the actions of those forces.
So all in all, I really hope the crisis and its consequences will not get any worse and even though I think that, inevitably, further problems will arise there hopefully will be good solutions for them and the possibility of an economic revival will exist.
by Rebekka
>>>>>>>
Financial crisis hits town built for the American Dream
The text 'Financial crisis hits town built for the American Dream' written by Philip Sherwell in October 2008 is about the first 'planned suburb' in America and its problems because of the financial crisis.
Levittown was built for people who lived the American Dream in the 1940s and they had a lot of luxury. Now everything has changed. The stores have to offer heavy discounts or two-for-one deals or even run down their business because people don't spend money hand over fist anymore.
I think it is horrible that the financial crisis is able to destroy a whole suburb. It is sad that Levittown, built for people who were determinated to have success, can be destroyed so easily.
Levittown shows one the dramatic scale of the financial crisis in America.
by Svenja
USA's rich and famous reel under mortgage crisis
The article, published on an internet platform of a news magazine in July 2008, deals with the current mortgage crisis that has got a huge influence even on rich celebrities like Michael Jackson or TV star Denise Richards.
Michael Jackson, the King of Pop, who almost lost his Neverland ranch, got a financial support of 24 million dollars of an investment firm. Other examples are baseball player Jose Canseco, who had to pay for costly divorces, talk show hostess Ellen Degeneres, who is in depts of 40 million dollars for a compound, or reality TV star Denise Richards, who buys and sells a lot but actually loses far more money than she really earns.
In my opinion, I am not really sympathetic with the rich and famous. There were times when they had success and got popular, but nothing lasts forever. It is for sure that I would enjoy my prosperity at first, but I would also think about my future and not squander all my property. I think this is extremely naïve and irresponsible.
It is their fault if there is no more money anymore. The average citizen would be so glad about winning the jackpot while the rich and famous are wasting their money and start complaining in the end. This is a mystery to me.
by Irina
USA’s rich and famous reel under the mortgage crises
The mortgage crisis is one of the recent topics at the moment. It inflicts severe damages on the economy and on the society, but the very last persons we feel sorry for are the stars and celebrities like Michael Jackson, who had lost almost his beloved “Neverland Ranch” in California.
In our opinion it is a bit unsuitable to talk about the celebrities loosing their properties, because a lot of them drive about 10 cars, earn approximately more than 5 million dollars and own cribs worth 100 of thousand dollars. We agree that they suffer from the crisis as well, but who suffers more? A family who has lost their house to pay the debts and has thus no roof over their head or a “needy” celebrity, who looses one out of 7 houses.
So all in all we can’t sympathize with those who feel sorry for the rich and famous while they forget that the average American citizens suffer even more from the mortgage crisis.
by Lisa C., Jenny, Konstantin & Jan
“Is it return of the Great Depression of 1929 for US?“
The article published on 10 August, 2007 by ibnlive.com is about the main reasons of the financial crisis in the USA.
Because of the US typical „cheap money“, which means that money was loaned out to low interest, the stock market is facing „nosedives“ because of liquidity problems at the moment. „If you can't sell something, you can't borrow against it. And as a result, you can't spend“, this is what describes the current situation best.
Those signs may indicate the beginning of a new „Great Depression“ as there has already been one in 1929.
That is why we think that the “worse case scenario” will hit the global stock markets in the near future. The current Situation of the financial crisis indicates that even with the help of political funds there will be no possibility to anticipate more nosedives of credit institutes. The only chance to escape this vicious circle might be a new beginning, in which everyone is cooperating with each other internationally instead of trying to defeat the others.
by Lisa F. and Christian
Subprime Crises
The text published on October 1, 2008 deals with the loss of one belief that has united America.
The American Dream appears to be no longer an American Dream because of economic crisis fuelled by housing slump and sub-prime lending.
Most Americans worry about their own and their children´s prospects for the future.
The families have to work longer and harder to keep their living standards.
--> Income has declined --> Many Americans have taken sub-prime credits --> Debts!
But the Americans still believe in the dream although the gap between rich and poor has widened.
We think that the American Dream no longer exists because originally it promises equality, success and opportunities that nowadays are not granted any more.
by Christoffer and Johanna
The American Dream
I summed up Michael Neumann's article in Die Zeit (October 2008) in
10 theses:
- Only immigrants still pursue the American Dream today, as it has its origin in the Declaration of Independence.
- Bush's regime was the biggest “American Frustration“.
- America is full of contradiction.
- Due to globalization the financial crisis is a problem of the whole world.
- The moral failure of Bush as president is the problem of America alone.
- With Obama's presidency Bush's failure might be forgotten.
- There are several focal points concerning the American Dream:
- the pursuit of happiness
- possession and conquest
- private and political freedom
- military superiority
- community and solidarity
- belief in the ability of self-rehabilitation
- In reality, there is an adequate nightmare to any dream.
- Self-doubts are unthinkable in American patriotism.
- The nation's belief in the constitution, safety and freedom, is unlimited.
by Lisa F.