Assignment #6 VMoore

Paul Krugman confronts the lead of to the economic crisis that we are now in, in his article Revenge of the Glut, seen in The New York Times. Krugman agrees with Ben Bernanke who said that the reason for the US falling economy lies in Asia. When the Asian economies started to fall, they gathered foreign assets putting their capital into the world. This capital was cheap and led to the trade deficit that we now have. Other small European countries also are running into this problem.

This fast inflow of money made investors feel like they were secure. This led to the buyers feeling like they would be fine to buy. But this quickly fell as we realized the problems we had created from the imports. Now people are losing their homes and struggling to pay off loans. So no one is investing anymore, causing the economy to rapidly fall. If something doesn't happen soon our economy is going to crash and burn. We can only hope that Obama's stimulus package will inject the money that we need into the economy.

Assignment #6 areid

The article this week looks to be written as a suttle venting post and an opinion about how America got in the economic mess that we are in today. He bases his argument off of a speech that Ben Bernanke gave four years ago. The autor agrees with Bernanke when he says that the slump came from the trade deficit of the U.S. Bernanke said four years ago that the problem lied in Asia and not the U.S. because of all the importing of capital goods. Now the U.S. has over taken the same problem as Asia did but in a much larger scale. The author says that the Asia problems were big for the times but seem minisquell compared to Americas' problem.
The author writes to an audiance that likes to hear lots of opinions and possibly takes what they like and uses it to have conversation or takes the author's opinion as their own. The author sums up the piece by a couple points. Businesses can not invest in the amount of savings that is wanted. The saving of money is the best thing to do but to keep the market flowing and to keep buisnesses on their feet they have to invest. The question now becomes how are they going to be able to invest what others want them to. This paradox "is a global slump that leaves everyone worse off. So that’s how we got into this mess. And we’re still looking for the way out."

Assignment 6 Mward

"Revenge of the Glut" by Paul Krugman in The New York Times sums up the views of Krugman related to the recession of the American economy.suffering from a global paradox of thrift: around the world, desired saving exceeds the amount businesses are willing to invest. And the result is a global slump that leaves everyone worse off. Basically too many investors are putting their money into businesses that are failing, in turn everyone is losing money. Like the reason the housing market crashed was the shady transactions of some banks and lenders, the reason the stock market is crashing is the unwise investments of some accountants and investors. Whether they be purposely invested or not.

Assignment #6 J Miller

New York Times article "Revenge of the Glut" written by Paul Krugman is directed to the American audience. It informs us as American people that subprime lending and bad home loans are only part of the problem of our nations financial downfall, we're in a world of troubled borrowers. The global debt crisis is so widespread and the answer for it begins with our giant trade deficit which was suppose to be our capital inflows but ended up spreading money to other nations according to Ben Bernanke who is a Federal Reserve chairman. This caused many smaller European economies to thrive while most of global savings glut ended up in America. American bankers hid risks and fooled their investors giving American homeowners greater assets in their homes while currencies were strong but while assets disappeared the debt still remained causing manufactures to collapse mainly in the car industry.

Our nation has made many poor economic decisions and it has occurred over several decades it's not like we fell into this huge hole of debt overnight. Yes, Americans get money hungry and will do what ever it takes to make more or do whatever it takes for their company to strive without ever thinking about the downside but sometimes you have to find yourself in a huge hole before anything good ever happens. Although the glut is bigger than ever, we're all in hopes that one day there is a chance in saving it.

Assignment 6 C.Carolina

"Revenge of the Glut" by Paul Krugman of The New York Times sums up the views of Paul Krugman related to the recession of the American economy. Krugman blames the housing market and the lack of lending by our national banks for the current economic state. As it is true that the housing market fall was directly related to the illusive tactics of bankers and lenders. Basically Krugman states the "revenge of the glut" is the cause of our recession. As a result of imports exceeding exports, the fall of the american dollar, and the fall of the domestic automobile industry we now have concrete examples of this "revenge" Paul Krugman titles his article after. This much is true, we and respectively other powerful countries alike are facing hard economic times for a number of reasons. Although it is necessary to find the cause of the problem, it's even more important to formulate a solution. Regardless of the "how" and the "why" the American people need to know the "when" and the "where". The quicker the better.

Assignment # 6, T. Beasley

This article titled "Revenge of the Glut" by Paul Krugman in The New York Times addresses the current issues faced in the economic crisis of our nation. It also speaks of the same issues being faced in other places worldwide. It looks at what happened to get the situation as bad as it is.

The "revenge" is that our nation has ended up in this crisis due mainly to poor choices made in lending and by the fact that there have been more imports made and too few exports of this country's goods. The article even mentions that the American banking system hid risks and fooled investors.

Overall the article attempts to explain the reasons behind our nation's current economic problems. It attempts to explain to the average American citizen what actions and which people are to blame for our current situation. The ending sentence pretty much says what's important..."We're still looking for the way out."

Assignment #6 S.Layman

The article "Revenge of the Gult" was written by Paul Krugman in the New York Times.This article was written to show that our economic problem is one that is not only ours, but one that the rest of the world has faced. It is directed toward the US citizens as well as the rest of the world.

It shows how our economic crisis is a greater form of the one that Asia experienced awhile back. Things keep getting worse and the value of money keeps going down more and more. When countries think that they are safe and "all is well" is when it all starts to crack. All the problems start to emerge to the surface and they are problems that many other countries have seen....or even contributed to.

This argument kind of shows us that other countires have been through this before. While some have rebuilt themselves it takes others awhile longer...hopefully we can get through these tough times just like Asia.