Channel One News 9/30/08

The dow down 750 points
City group took over wachovia
lack of gas in the south

Anxiety Spreads

1. The factors that forced Marsha Asbury to raise her prices were, inflation, the cost of her ingredients being shipped is very costly.

2. Appartment rates increased becuase tenents are having to pay for gas, water, sewer, and trash.

3.Consumer Price index is the average price change of goods purchased by a household.

Core inflation is the measure of inflation that doesnt include food products and energy usually.

I think the best way to measure is Consumer Price index because, it measures everything, food, housing, apparel and engergy and core inflation doesnt include everything like food and energy.

The Current Economic Situation

Some of the things that lead up to the current situation are sub-prime morgages, credit default swaps, and credit insurance contracts. Sub-prime morgages are morgages that are usually given out to borrowers with low credit ratings. People that borrow with a credit rating lower than 600 will usually be stuck with the sub-prime morgage and higher intrest rates.





http://www.investopedia.com/terms/s/subprime_mortgage.asp
http://en.wikipedia.org/wiki/Credit_default_swap

The Great Depression

The Main Cause of the great depression was the combination of the unequal distibution of wealth, and the extenstive stock market speculation. Stock market speculation is the chance you make in risk of a loss and no return.
http://www.gusmorino.com/pag3/greatdepression/

Effects of great depression affected the american people badly because there wasnt a welfare system for people who were unemployed. Repossion of cars and houses became very common cause people couldnt aford them anymore. Stock markets crashed causeing even rich people to crash over night.
http://www.thegreatdepression.co.uk/effects-on-america/

We came out of the great depression because of the new deal. President Roosevelt had an idea of providing relief to unemployed people, and the manufactoring sector. He promoted the American Finance system so they would not have anoter depression. The new deal helped come up with social securtity.