RRJ3

Reference:

THE NEW YORK TIMES. (2010, July 12). Credit Crisis-The Essentials. Overview, Retrieved on sep 29, 2010. Form

http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/index.html?ref=economy

Summary:
According to the article, in 2008, the amplified credit problem become the biggest economic problem on Wall Street since the Great Recession. There was a loss of hundreds of billions in exploitations in Foreclosures. Since that times Congress has approved the saving plan by dividing the 700 billion dollars in October 2008. But when the disaster was avoided and the problem throughout the world, banks in Europe had lower demand and job cuts and the world started falling into recession. In 2009 the Democrats in Congress confess 787 billion dollars to motivate the economy; China also pledged to motivate the economy with 500 billion dollars, and central banks around the world helped to reduce interest rates to approximately 0%. In the summer of 2009. The economic problem had divided Europe, particularly because Germany
refused to help solve the problem of some countries bordering the Mediterranean Sea, where they suffer from the problem of major credit. Moreover, they are unable to lower the value of their currencies. Then they pledged to the International Fund to provide approximately one trillion dollars. On the other side, America was focused on the deficit problem in the States and solve the problem of unemployment, making the Republicans opposed in the Senate, where it caught fire and stubbornness led to high unemployment.

Reaction:
In my opinion, the economic problem involved and affected major economies, such as some European countries and the United States and some East Asian countries such as China and Japan. They need a long time to find solutions to end the economic problem . Some of these countries could fix the problem, because they have strong economies also the logical population helped them, compared to other countries such as China, especially European countries. But still employment is going up in most of these countries. the number of universities are is less than the required comparing to the numbers of the students; furthermore the people do not have high degree.