The Financial Crisis of the U.S. Today

          When Lehman Brothers, which had been a global finance service firm, bankrupted, the whole nation went in to the big confuse. To start with the bankruptcy of Lehman, many big companies, which are related to investment and banking, are going through harsh crisis. Most of citizens in the U.S and the other countries started to recognize the national financial crisis with the bankruptcy of Lehman Brothers. The economic crisis of the United States affect to other countries is really enormous. Economic situation of many countries are depends on that of the U.S. that it is not excessive to say that this crisis of the present is the world economic crisis. Besides, this country has lots of accumulated debt which most people did not concern before the crisis was on the surface. According to the U.S national debt clock, the debt as of 10 December 2008 of the U.S is more than $10.6 trillion. It is getting rising rapidly and the debt percapita is about $35,000. The U.S. government does not have money as much as people expected before. Moreover, this country relies more and more on China and some of Middle East countries. It was not long ago that people realized the current situation of the U.S. Can you believe that the government of the world’s strongest country does not have money and does have lots of debt?

          The main start of this crisis was the collapse of subprime mortgage. I thought that mortgage is a really good policy before I met the financial crisis. The biggest fault of mortgage was the case that people cannot afford to pay for it. As a result, Lehman brothers was bankrupted and every firms and countries which had a loan from Lehman. Everyone started to worry about their future and reduce their expenses.

           In my opinion, the way of reducing this tremendous debt and restore a healthier economic future for the United States depends on the government. The first thing the government should do is to relieve citizens and to show them their ability to solve the problem. The reason people do not expense is that they worry about current economic situation and do not want to use as much money as they used before.  The second, the government should put effort to reduce the cost of raw materials. The consumption of people is getting lower, but the company cannot lower their product under a certain level. Lowering prices is not good for company itself, too. So, government should lower the price of raw material to help companies by lowering their price without much worry.

          I think this crisis will be relieved and the world’s economic situation will be better than right now in few decades. In the condition of we can handle this crisis well, when our generations work actively in the future, we might not have this kind of crisis, and the financial situation might not be as hard as that of today. When we consider the economic history of certain countries or the world, there have always existed repeated economic down and up. Many people say that this is the most severe world’s economic crisis after the black Monday or even worse. It can be more serious than the black Monday. However, if we solve the economic problem and pass the crisis of today well, we will be able to enjoy better future than ever.