U.S. bank failure

Justin Bjornson

Due to the recent decline in the American economy many banks in the U.S. are expected to fail. While the 700 billion dollar bailout by the government will save some banks it will not save them all and many are expected to close down. The U.S. economy hasn't been in such crisis like this since 199o when 800 federally owned companies were shut down. Experts don't really know what to expect but fear that it will be similar to what happened in 1990.

In my mind not only does this news affect the U.S. it affects the entire world. The U.S. economy until recently was the strongest in the world and with all the banks closing and economic distress it could hurt the rest of the world’s economy. While the U.S. really does not provide many countries with goods it imports almost everything it uses and with the failure of economy it will force the U.S. to cut back spending and in turn other countries will lose money and their economy will fall. Along with imports the U.S. is in major debt and will not be able to pay back countries, in turn they will lose money and be unable to economical grow.