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Essay / Research Paper Abstract
A 5 page paper discussing the US economy, auto industry and housing market. With GM and Chrysler both in bankruptcy, it is certain that the auto industry will be forever changed. Interest rates are at historic lows but lenders are loathe to extend new mortgages until they see the end of price declines and the economy continues to lose more than a half million jobs each month. The bottom of the trough of the business cycle is an unpleasant place to be… Bibliography lists 6 sources.
Page Count:
5 pages (~225 words per page)
File: CC6_KSeconHousAuto09.rtf
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Unformatted sample text from the term paper:
its auto industry and its housing market all are suffering some of the worst economic times in memory and in history. Interest rates are at historic lows but lenders
are loathe to extend new mortgages until they see the end of price declines; two of the "big three" auto makers now are in bankruptcy; the economy continues to lose
more than a half million jobs each month. The bottom of the trough of the business cycle is an unpleasant place to be... The Economy
The US has been in formally-defined recession for more than a year, and of course this one has the added feature of the Wall Street meltdown and
massive government spending that may or may not have any beneficial effect in the long term. Beginning with the second quarter of 2009 in April, GDP is expected to
increase one, two and 2.5 percent for the remaining quarters of 2009 (Revell, 2008). At the end of 2008, it had been forecast
that unemployment likely will continue to rise through 2Q09 to reach 7 percent, then remain at that level through the end of 2009 (Revell, 2008). It already has surpassed
that level, however, as job losses continue. Ten percent is a more reasonable estimate at present. The Consumer Price Index declined from
7.75 to 2.75 in 3Q08 and at the end of 2008 was expected to finish 2008 at 0.5 percent, increasing to 2.0 percent for 1Q09. It is forecast to
decline slightly in 2Q09, then increase to about 2.5 percent for the remainder of 2009 (Revell, 2008), but that estimate will remain applicable only if the US economy does not
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