Economy

What I have learned so far about the economy is that our country, as well as many other countries are having major money problems. From my understanding, the United States money problems started when banks started loaning money to people to buy homes and the people were not able to pay their monthly mortgages. One of the reasons why they were not able to pay their monthly mortgages is because the banks had given them bad mortgage loans that were too much for them to pay with the money they were making.

Also, the banks were getting greedy and started doing really bad things to get people to sign up with them for a loan. They started lying about how much money people were actually making so that they could get more loans processed which made them look good as a bank. Because the more loans they got people to sign the more money they could make off of the people. But when a whole lot of people were not able to pay back their loans the banks started running out of money to loan other people and businesses who wanted to borrow money from them. Now many of our country's banks have ran out of money to keep our economy going strong.