It is no surprise that the economy is not in good shape. The Great Depression back in the late 1920's left the country stunned as hundreds of Americans began to find a home in the infamous "Hoovervilles". The newly elected Franklin Delano Roosevelt used his New Deal policy to try to bring about reform and reconstruction. Who will be the Franklin Roosevelt of 2009?
Based on the chart above the 2008 Financial Crisis appears to be a nightmare for most homeowners. Even the countries in Europe are beginning to feel the pinch of recession. From the 1980's to 2007 the housing prices began to increase rapidly to 200,000 until 2008, when the prices decreased by $50,000. If this trend continues, the the housing prices may decrease another $50,000, or even more. However, if things begin to look up, they will obviously decrease, but how much? As the prices in housing began to decrease, the amount of sub prime homeowners also began to increase. Although, once the housing prices decreased, the amount of sub prime homeowners began to increase even more. In 1990s, there was about four red dots mixed in with the black. Once the housing prices increased and drastically increased, the number of red dots also drastically increased.
It is quite extrodinary how the different countries in the world depend on eachother. Nevertheless, it is not a good thing when one begins to fail. Because there has been a decline in confidence in the banking systems, the United States, European Union, and also the United Kingdom have began to decline. Japan, China, and Russia have seemed to have a hold on their banking system, although it has had it's ups and downs. Currently, it would appear that the United Kingdom (in 2008) has dropped the most while leaving the United States and European Union in the dust. Our country is entering a long recession, and we are all going to feel it. What will be our"saving grace," and when will it happen?