Journal #10 American Feels Financial Pains

Recently, I read one chapter from Time magazine which describes American economic recession that I think it's a really current issue that people concern. Around 1999, the companies of technique bloom too fast and the price was not deserving so high that it resulted in the price of stocks dropped down rapidly. Many people who bought the stock lost lots of money. Besides, in the past, people used to spend too much money and also they used to buy real estates by money which come from the banks' mading loans to people. Recently, the house price is getting down that it means people had to pay more money on debts that the results they have were not expected before. Finally, people can't pay for debts and the banks can't get money which become irrecoverable loans that it was one main reason of American economic recession. Another one is that gasoline price is increasing that people who have cars need to pay more costs on it, even costs on heat homes. Also, food price is getting higher that people try to cut back on their extra spending. It affects the retail stores because of earning less money. Moreover, the owners of retail stores change to hire fewer people on emplyment in order to reduce their costs to survive. It also makes the problem of unemployment. The U.S. government try to stop the downturn of recession, like Federal Reserve which is the central of banks that they cut three-fourths percentage of a point that they try to encourage people to invest on stock markets. The Congress made a policy of issing tax-rebates that they give rebates to people who earn a paycheck.
Actually, there is no really correct solution for recession, like people you know are always looking for job, and oil price won't be lower. The tontent in the end give some tips for people to survive. For example, you may need to prepare for switching a career that you should prepare looking for a job in case of being fired. In investment, they think people can make a shopping list for stocks which prices may lower than their really prices, they suggest people make a financial plan on it for a long-term strategy. Finally, they think when people get tax-rebates, if get a check, people should put money on their high-interest debts like credit cards. If not, they suggest people put money on tax-referred account, like IRA(Individual Retirement Account.) It may loose the American financial pains and overcome the recession during this time.