The world economy is facing its worst economic crisis in decades since the last one in 1945. Among the overall slow world growth, recession, laid off employees and high commodity prices, the United States, being the only world superpower and the central economy of the world, is faced with a huge number of problems. Amidst growing dissatisfaction in investors, both internal and external, over the state of the economy is resulting in precautionary mode of actions resulting in falling stock prices.
Likewise, high amounts of initial investments in home mortgage schemes and the overall US economy resulted in good growth in the years 2006 and the beginning of 2007, causing inflation and hence an increase in the overall basic commodity prices.
Growing dissatisfaction due to decreased confidence in the policies of the lastUSadministration, a very high investment in supporting war on two fronts, the energy and fuel dependence on external sources and a largeUScurrent account deficit resulted in reduced investments in the economy.
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