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Discussing the Economic Crisis of 2008

- Use the internet to locate articles discussing the economic crisis of 2008.
- Find one article that you would like to read.
- Skim the article.
- Read the entire article, highlighting topic sentences.
- Identify the author's thesis.

Write a summary and response, beginning your post with the author's name and title of the article. Identify the type of article (i.e., information, feature, opinion). Who is his or her primary audience? In the first paragraph, objectively summarize the author's thesis, purpose statement, or controlling idea. What is the main idea?

You may respond to the entire article, or you may concentrate on one or two points. Your response should be based on analysis, reasons, and evidence, not your feelings and opinion. Write with authority and avoid statements, such as "In my opinion," I think," I feel," and "I believe." Be honest in acknowledging your own bias; compare and contrast your opinions with the author's. Avoid biased language or attacks on the author. In your conclusion, sum up the main points. Explain how this article agrees or disagrees with your thesis statement. Use in-text citations (in APA format) to document paraphrased and quoted materials.

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The content of the attached solution document is copied and pasted here for you. Please note that this text box does not show italics required for APA formatting.

Search on any Internet engine using the phrase 2008 economic crisis, and review the articles listed there. Do not choose Wikipedia, as it is not a scholarly source, and many colleges and universities expressly forbid its use. When you choose an article, cite it as I have done for the one I chose as your example:

Reference in APA 6th edition format:

Guina, R. (September 29, 2008). The 2008-2009 financial crisis - causes and effects. Retrieved from http://cashmoneylife.com/2008/09/29/economic-financial-crisis-2008-causes/

The entire content of the article is copied and pasted here for you:

The 2008 financial crisis is affecting millions of Americans and is one of the hottest topics in the Presidential campaigns. In the last few months we have seen several major financial institutions be absorbed by other financial institutions, receive government bailouts, or outright crash.

So what caused the financial crisis of 2008? This is actually the perfect storm which has been brewing for years now and finally reached its breaking point. Let's look at it step by analyzing each step.
This video explains the economic crisis: The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Market Instability:
The recent market instability was caused by many factors, chief among them a dramatic change in the ability to create new lines of credit, which dried up the flow of money and slowed new economic growth and the buying and selling of assets. This hurt individuals, businesses, and financial institutions hard, and many financial institutions were left holding mortgage backed assets that had dropped precipitously in value and weren't bringing in the amount of money needed to pay for the loans. This dried up their reserve cash and restricted their credit and ability to make new loans.

There were other factors as well, including the cheap credit which made it too easy for people to buy houses or make other investments based on pure speculation. Cheap credit created more money in the system and people wanted to spend that money. Unfortunately, people wanted to buy the same thing, which increased demand and caused inflation. Private equity firms leveraged billions of dollars of debt to purchase companies and created hundreds of billions of dollars in wealth by simply shuffling paper, but not creating anything of value. In more recent months speculation on oil prices and higher unemployment further increased inflation.

How did it get so bad?
Greed. The American economy is built on credit. Credit is a great tool when used wisely. For instance, credit can be used to start or expand a business, which can create jobs. It can also be used to purchase large ticket items such as houses or cars. Again, more jobs are created and people's needs are satisfied. But in the last ...

Solution Summary

This response is comprised of an analysis and reflection upon an article discussing the financial crisis of 2008, including its causes and the federal government's attempted recovery package, with prophetic reasons why the stimulus package was doomed to fail. This response is completed in under 2000 words and includes references.