WALL STREET BLUES!!!!

“HEY CAN I BORROW 20 BUCKS FROM YOU?” But can you trust them when they say “I’ll pay you back?” Well can you? What would you do if they didn’t keep their word? Would you say to yourself,” I wish I didn’t give them any money if I knew they weren’t going to keep their word. There will be some people that are out there would want to borrow money, they would promise you that they will repay you back, but they would spend there money and they can’t pay them back. There would be hundreds and thousands of people that will be borrowing money and if you don’t repay them back than you will get the idea of what’s going on in the U.S. economy. So when the payments had stopped, the triggered a financial crisis that it has rippled around the world. Lehman Brothers was one of the biggest investment banks, had announced that it had lost so much money because of all the bad loans that it had to close. The United States stock market had fell 504 points that day when the investors began to pull out their money. There were people that wanted to buy homes but they couldn’t because they couldn’t afford to buy it. But the banks created a special home loan called subprime mortgages. Credits are a measure of person’s ability to repay borrowed money. The U.S. Treasury Secretary Paulson had asked the federal government to give him $700 billion to rescue the nation’s troubled banks. They could use the money to buy up the bad loans, and then work with the borrowers to get repaid. With all those bad loans gone, banks would be able to lend the money freely, and the nations could get back to business. But why borrow the money, if you can’t pay them back? Only some people can do that. JUST PAY THEM BACK!!!!