LA Times–The economy: Multiple crises, no single solution

It seems like politicians for months have been throwing around numbers in the billions and saying that unless the government acts right now everything will get worse. What is going on?

The economic system was hit was a flurry of crises at roughly the same time, and there isn’t a single solution to all of the problems, even though they are connected.

What is the housing crisis?

Both political parties have supported the idea that individuals should own their own homes. But in pursuing that goal, some financial institutions lent money to people who could not afford the long-term commitment, which often included rising interest rates after an initial period of low payments. Critics complain that a variety of financing vehicles snared people into impossible situations, especially as prices of homes fell and the monthly mortgage payment rose.

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Posted in * Economics, Politics, Consumer/consumer spending, Credit Markets, Economy, Housing/Real Estate Market, Labor/Labor Unions/Labor Market, Office of the President, Politics in General, President Barack Obama, The 2009 Obama Administration Bank Bailout Plan, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The Fiscal Stimulus Package of 2009, The National Deficit, The Possibility of a Bailout for the U.S. Auto Industry, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package, The U.S. Government, Treasury Secretary Timothy Geithner