The Us Economy and Financial Industry

Financial System

The US economy and financial industry is facing the extreme challenges and is struggling to recover its crises but the fact and figures are describing another story and that story is not in the favor of US Financial system & economy. The USA data is representing the alarming situation and indicating the double-dip recession is going to be faced by the USA.

Discussion

As per the analyses, the USA government failed to control their debts and the restrictions on the credit limit by the bank, a gigantic financial crisis in the European countries are all the sign of upcoming financial crises. Tom Donohue, the President of U.S. Chamber of Commerce also warned about the upcoming double dip recession, he expressed his concern about the situation in his speech at Chamber's Outlook 2010 that: "Congress, the administration and states must recognize that our weak economy simply could not sustain all the new taxes, regulations and mandates now under consideration. It's a sure-fire recipe for a double-dip recession, or worse" (The Hill, 2010). There is another aspect of the USA economy; following are the past trends that are the indicators of future trends:

The chart told that the economy grew up at the rate of 3.5 percent in the 3rd quarter but the previous trend is not projecting the good pictures and because of this, the economists are keeping their concerns about the upcoming double dip-recession. The prominent economist of Moody's Economy.com, Mr. Mark Zandi, expressed his views as: ""If we do slide back into recession, it will be very difficult to get out," (CNN Money).

(Trading economics)

The stock market which is also considered as a barometer of the economy is also projecting the volatile trend. If we look at the above chart, the prices are declining from the previous levels that are another issue for the US economy. This price fall is almost up to 20 percent from the existing levels. The chief economist and strategist, Mr. David Rosenberg, expressed his feelings which truly unveil the real picture of US economy. "Post bubble credit collapses are generally fraught with fragility and general economic weakness,........ .I don't believe you can destroy trillions of dollars of wealth and believe we're back to normal." (CNN Money).

Conclusion

Above illustrative indicators projecting volatile trends, although there is some recovery that can be viewed but the huge size of USA economy and its involvement on the global issues as well as the view and expressions of the professionals are still in concern, as they already warned about the upcoming double dip recession in USA. On the other hand, above discussion is concluding