Macroeconomics

IntroductionUnited States of America is the largest delivery in the dry land with over of gross domestic product . It recorded the highest GDP (Gross Domestic Product ) of 13 .8 jillion during 2007 with GDP per head of 45 ,851 , unrivalled of the highest in the world (Economist .com , 2008 . Such high growth evaluate suggest that the economy has considerably done well over the period in most areas of economics i .e . manufacturing , retail , agriculture etcConsidered as the lone super power of the world , US economy has grown at a considerable pace during the conk decade however , its recent economic performance is non up to the par as the current pecuniary nuclear meltdown is critically damaging the overall financial system of rules of US as well as the world . Its financial system is going through a strong reassessment as to analyze and assess what are the acceptable levels of interest rates as well as leveraged capital for the financial institutions .

Relying on largely on the financial innovation and de-regulated environment financial institutions of the country embarked on lending spree even into those maverick market segments which were traditionally not considered as acceptable endangerment under conventional banking norms . The lending to subprime borrowers , though on one hand provided banks with rates of return , but on the other hand it also resulted into capitalization of high risk which has presently ultimately caught up with most of the so called innovative financial institutions . The mass failure of subprime borrowers to repay their loans caused the strong credit crunch...If you compliments to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper