Are we in a Recession?
RECESSION, depression, inflation, and the current plethora of problems no political party wants but here we are. Some say we are in a recession some say we are not.
The fact is that Washington is very worried about the economy. In 1970 the United States suffered from a recession, and it proved to be very difficult for many. Among the various things done to try to get out of that recession was the lowering of interest rates, which stimulated big business, as it made money cheaper to borrow. Those who wanted to buy cars, build homes, or expand businesses bowered and used money when interest rates were lower.
Today we are in a mountain of debt and it is getting more and more difficult to come out from under this mountain of debt that we’ve accumulated. Mortgage loans cannot be paid back; so foreclosures short sales and auctions follow. Without credit, people can’t buy houses, cars or even household appliances. Business and industries suffer. Investors pull their money out of the stock market and therein lay the plethora of problems.
A Stimulus package
Washington has come up with a solution they hope will boost the economy. It’s called the stimulus package. Under this bill Americans would receive refunds of $600-$1200 in the hopes of encouraging consumer spending. My question is what do you plan to do with your check?