The banking crisis in the USA

22.10.08
Antonia Cordedda Home work

The banking crisis in the USA


The three charts show the American economy has gone down. This is not new but predictable because the economy has got richer so it is more likely to happen. The policy making of this administration has been to accord with aggressive liberalist laissez faire outlook. but in recent times, this behaviour has intensified without rule and without etiquette.
The first chart is about the Dow Jones. The Dow Jones can provide a broad base index for the American market like the FTSE in the UK and the CAC in France – but the Dow jones is the most important influence on the world because it represents the biggest market in the world – the USA. Dow Jones financial publishers founded 1882 by 3 reporters dow jones and bergstresser who also founded the wall st journal, it was taken over by news corp 2007. Marketwatch.com, the source of the three charts is a subsidiary of the wall st journal owned by News Corp.
So are the 2008 figures correct? If the government can show that unemployment has decreased then they can show they are a good administration. Also the figures are not consistent and therefore not realistic because people may take a temporary job and so be removed from the figures but three months later they are unemployed again with the same problem.

In 1930 why were there so many banks? It is not viable to compare between the figures because the social situation in the 1930’s was totally different than 2008 most of the people were poor people, capital was in the hands of a few people but the banks needed the money. In the 1930’s there was the New Deal, the state invested under Roosevelt to improve infrastructure and every area of the American economy.

The relative value of things are the same but the social conditions are different.