http://news.bbc.co.uk/1/hi/business/7724215.stm
Summary:
In the current recession, banks are having many problems keeping up with the economy. Banks are considering another tax reduction of 0.5%. This banking crisis can be comparable to the one in World War I. Apparently; this recession is expected to continue for quite a long time according to the Bank of England. Banks are urging the government to contribute billions of dollars help us get out of this recession. Banks as well as the government is trying to find a solution to this recession, but we all know that it will take lots of time before we can get ourselves out of it.
Connections:
This chapter is all about banks and money. This article talks about the fact that banks are trying their best to get out of the recession. However, it will take a lot of time. Also, 7.2 talks discusses if banks can actually go bankrupt. Well, the main reason we are in a recession is because one of the banks in the
Personal Reflection:
I agree that this recession is going to take some time to get out from. However, I don’t think that it will take as long as the Great Depression. We have seen a recession before, so I believe that we can find different solutions or reuse the ones that we had in the past. The tax cuts will help, but I don’t think it is enough to pull us out. One strategy I read on a website is to get people to spend more so the money can be invested in the country.
1 comment:
I also agree that the current economic downturn will take time to heal itself. This recession is a lot different than other recessions from the past decades because this recession affects all parts in the world. To get out of this recession, I believe all nations should meet together and find ways to get out of the recession. I agree cutting interest rates on loans would allow people spend money on the economy. However, these people must be able to pay up the money. If not, the bank would suffer a lot like the mortgage crisis in the United States. In addition, governments should invest and use money to help the economy jumpstart.
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