Alysse Johnson Eco 101 Test Part 2 (Economic Recession) 11/22/08 Lately in the past years I believe that the US has been headed toward a recession and as of now we are currently in one. Although most people tried to deny it for the longest time and currently some still try to, but no longer can it be ignored that we are in a recession and actions need to be take to help the US get out of it. One of the things that lead to the start of our economic recession is the drop in housing prices. There has been a 4% decrease in the housing prices annually for the past half of a century and the prices are still falling at accelerating rates. These types of housing price drops have not been seen since the Great Depression. The price of construction and sale of housing was thought to and dependent upon the fact that the price of the actual housing would be the same or increasing in value, not decreasing. Soon after the decrease in housing price the credit companies started to crunch on their loans and the credit availability. Early banks had been too lenient in the past because people would take out loans and then never
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