The Domino Effect Article

1.How is the "domino effect" affecting the global economy?
- The global banks are not lending out money to different countries. The economy is decreasing.
2. What caused the U.S. housing crisis?
- The bank lenders have been lending out serveral loans to people who were not able to pay back the loans. Borrowers could not sell their homes to pay loans.
3. Why is the cut in consumer spending a serious pr0blem?
-The cut in consumer spending is a serious problem because there has been fewer jobs and less income.
4. How is less spending affecting local and state governments?
-Less spending is affecting local and state governments by less tax revenue and raised tax's in all 50 states.
5.What trend does expert Brian Sack predict for the economy?
-A tough recession to get out of.
6.What have the world's key central banks done to stop the crash.
- Global banks have stop lending each other.