by Jennifer Powers

Created on: March 19, 2009   Last Updated: June 16, 2009

The state of the economy is very bleak and it has impacted everyone in the United States. Mall fronts are becoming vacant, businesses are failing, banks are going under, mortgage companies and banks are taking government bailout money, and unemployment rates are at an all-time high. The number of foreclosures make this "recession" a depression. So many people all over the country are walking away from their houses because they are so upside down, they would prefer to start over. As the stock market decreases, many see the value of their retirement "nest eggs" dwindle to half of what it was worth before the downward spiral began.

For those who owe more money than their house is worth, refinancing is not an option. Many lost their homes when sub-prime mortgages reset at the higher interest rates and had no other choice but to walk away. While these people can't attain a new home loan, the damages hit the other home owners because the foreclosed home lowers the real estate market value of other homes in the community. As less homes display For Sale signs, the majority of the real estate sales have been short sales and foreclosures. Other homes are vacant, lawns are unmowed, and property values continue to decrease.

Many businesses have ceased operations, such as Linens n' Things and Circuit City. These businesses tried to make changes in a struggling company, but did not succeed. Other businesses attempt to cut prices in order to try to increase business. But others cut its personnel or employee benefits, which ends up costing the American public. As unemployment reaches an all-time high of 10%, taxpayers have to pay for those on unemployment and welfare. The number of people receiving food stamps increases on a daily basis, and these are truly unprecented times.

What can be done to change this bitter turmoil of events? Scams are on the rise and target those trying to pinch a few pennies or sell things around their house to make ends meet. President Obama has tried to kick start the economy by spending billions on the Economic Stimulus Plan, and billions more in the Government Bail-Out, but this is not helping. Taxpayers have to pay for these reforms. The stock market and house values need to begin to recover before the state of the economy will begin to take a positive turn. Continuing to bail out companies, such as AIG, will only hurt the American people. All the billions spent have not helped get America out of the recession and has only tripled the national debt! However, hopefully there is an end in sight and the economy can start to recover.

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