Another frightening show about the economy

The American economy is in danger, and no one has control over the situation. The menace to the economy is likened to an earthquake that man has no control of. Surprisingly, despite the situation, ordinary people have no idea how the situation has deteriorated. They continue with their lives as I nothing has happened whereas, in the real sense, America might not have an economy.
The House of Representative voted in approval of bailing out the Wall Street because of an economic freeze up. Freeze up means that no one is willing to transact anymore. In typical cases, for example, Money Market Mutual Funds managers would lend money to the commercial paper market and then gave it back in the same actual amount or more. But with the economic freeze up, it means that the commercial market has no money to give back to its moneylenders

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As a result of the constant situation of the economy, the government is expected to come up with the money in order to help ease the economy freeze up. However, the intervention is complicated because if the government offers less money than expected, banks will be affected negatively considering the fact that they are the main lenders of loans. On the other hand, if the government intervenes by offering large amounts of money, the taxpayer is put in jeopardy.

Works Cited
http://www.thisamericanlife.org/radio-archives/episode/365/another-frightening-show-about-the-economy

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