The Domino Effect

1.How is the "domino effect" affecting the global economy?



The domino effect is affecting the economy by casuing it to severly worsen and cause great problems for people and businesses.



2. What caused the U.S. housing crisis?
The cause of the U.S. housing effect was due to lenders giving high risk loansto people with low incomes. The obvious result would be that people would not be able to pay back these loans so the prices of homes fell.

3. Why is the cut in consumer spending a serious pr0blem?
This is a serious problem becuase it has caused a drop in sales tax revenue.

4. How is less spending affecting local and state government?
Less spending is affecting local and states governments becuase it causes less spending, raised taxes, or ised emergency funds to balance the budgets.

5.What trend does expert Brian Sack predict for the economy?
Brian Sack predicts a more than likely recession on the way.

6.What have the world's key central banks done to stop the crash.
As of right now the central banks have started to work together to stop the crash and they cut interest rates at the same time.