Though the paper reports about “ green shoots” in the country’ s housing sector the statement of spokesperson Robert Gibbs is perceptional as he states that the employment rates would have been worse off and the current numbers are better. Though the news reported starts with evidence of joblessness and the worsening situation in the economy, it closes with a value-based judgment by portraying or laying emphasize the positive side of the economy. If the official recession started in December 2007. Let us look at the news published in the Times Online on December 2007.
The paper reports “ Losses arising from America’ s housing recession could triple over the next few years and they represent the greatest threat to growth in the United States, one of the world’ s leading economists has told The Times… … … … … … … ..This is a classic bubble scenario. A few years ago house prices got very high, pushed up because of investor expectations. Americans have fuelled the myth that prices would never fall, that values could only go up. People believed in the story. Now there is a very real chance of a big recession. ” Over the next five years, the futures contracts are pointing to losses of around 35 percent in some areas, such as Florida, California and Las Vegas.
There is a good chance that this housing recession will go on for years, ” he said… … … … … … … … ..Until two years ago, each of America’ s 50 states had experienced a prolonged housing boom, with properties in some – such as Florida, California, Arizona, and Nevada – doubling in price, fuelled by cheap credit and lax lending practices to borrowers who ordinarily would not have been able to secure a mortgage.
Two years ago, the northeastern states of America became the first to slide into a recession after 17 successive interest-rate rises between June 2004 and August 2006 hit the property market. ” (Budworth 2008) This news is true to the core as the country is on a 17-month recession since then. Although the news does not douse us with factual evidence on figures the reasons for the credit crunch and the free fall of the market have clearly been outlined by a simple mechanism of “ every uptrend has a downfall” The news is completely a value-based judgment and it clearly proves the theory behind it. The news stated in the Times online about the start of the recession also exposes us to the reason for the credit crunch or the reason for the origination of credit crunch in the US which is better explained in the following lines again from the Times Online on August 2008.
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