Why has the economy taken such a hit?

Posted in Credit, Debt, Economy, Lending on February 4th, 2008

Todays economy has hit a pretty low point. The stem of this problem started with the mess that was made in the sub-prime mortgage industry. Unscrupulous lending of money now have people stuck in very bad situations. Many people have been foreclosed upon due to ARM’s. Then naturally the problems in this market trickled down into the rest of the economy. We are now seeing many people who are stuck deep in debt and are now looking for ways of credit card debt relief. To add to the problems gas prices are continuing to rise. Which in turn many people are not spending much of their money on buying new products and goods. Thus affecting the economy and lowering the stock market.

Hopefully soon we will see a turnaround in events, however I personally feel that the economy has not hit rock bottom yet.