Financial Crises in the United States Essay Example | Topics and Well Written Essays - 3500 words

pecuniary Crises in the get together States - Essay ExampleThese events fall in to a fault led to major banks of the US creating an extremity package to rescue any ailing pecuniary institution which is in need of assistance. The Federal government has also moved in to ensure that it has a bailout package to rescue financial institutions. The New York quantify word expresses concern about the greater repercussions of these events. It worries that it would increase the unemployment rate (Sorkin, 2008). It also is concerned about the thousands of employees working(a) at Merrill and Lehman Brothers. The precarious condition of these companies was because of their inadequate investments in real estate during an economic boom. These investments were not beneficial which weakened the financial conditions of both companies. Most banks did not want to purchase Lehman Brothers because of the essential risks associated with it. The article also expresses concern about the financial he alth of AIG (Sorkin, 2008). It can be concluded that these events have sent shockwaves throughout the American financial system.In this article, it is learned that the Federal Reserve has not reduced fill order which has been demanded by Wall Street and financial institutions. But despite this, the Federal Reserve states in the article that it would closely monitor and observe the crisis. It has been investigating and analyzing the financial crisis which has slowed down economic growth in the United States of America (Reddy, 2008). Other major actions have included lending government support for troubled financial institutions. The main focus of the article is about whether further reducing the interest rates will have any impact on the economy or not. One school of thought believes that lowering the interest rates further would be risky and devastating for the US economy. Others blame the Federal Reserve for retentiveness low interest rates since 2001 (Reddy, 2008). They blame t his for