The economy crisis?

Question

why is the economy so bad right now??? is there hope

how does the economy get better??

and the gas prices when will there be a change

Answer 1

The answers to the first part of your question are being debated by various economic experts and pundits who cannot seem to agree.  However, I believe they all agree that there are a number of negative factors affecting the economy right now.  Increased fuel prices are squeezing the economy by driving prices up while forcing more money to be spent on fuel (less money to buy other things that are costing more).  This means production will slow down, causing unemployment to rise.

The downturn in the housing industry caused a massive loss in the financial sector because banks and credit companies had to write off bad loans, and home buyers who cannot pay their mortgage payments are now being squeezed not only by higher interest rates but also by higher prices elsewhere (less money to allocate toward house payments).  As it becomes harder for more families to make their monthly house payments (due to increased fuel prices and other costs) the banks are having to write off more bad debts and lose more money.  

The economy will get better but the question is "When?"  The answer is that the economy will get better when the problems correct themselves.  

Fuel prices may never come down, but the demand for oil will eventually drop due to either conservation or discovery and use of alternative fuels that reduce the demand for oil.   Prices of other products will go down as the demand for them drops and the supply increases.  

The housing market will start to recover when those who received bad loans, and those who gave bad loans, are no longer in the housing market.