Thesis: Massive Influx of Capital in US Economy

Sample Thesis Paper

When 2006 came, this trend took on a shape that began to ring sirens of danger amongst speculators around the world. The demand for the real estate prices came to a grinding halt and the US current account deficit began to change direction. The administration began to hope that bailout plans may help the economy pull through without any damage but two bailout plans combined could not save the economy from the recession that it had set out for. Steadily, the individual economies around the world began to take measures aimed towards adjustment but time had already run out. The banking sector began to run dry in the US as well as in the international banking sector. US and European financial institutions were the ones who took the hardest hit and several crashed within the next few months that followed. As time went by, the instability in the market did not show any signs of moving back to a revival.

The situation became so unstable that the financial damage being caused to financial institutions took on an accelerating trend. As 2008 passed by, this acceleration became even more prominent and many financial institutions began to panic. Incidents such as the ones of Fanny Mae, Freddy Mac and Lehman Brothers were perceived by consumers as proof of the fact that the recession was taking a sharp turn towards the worse and that the situation had evolved to a point where it was now no longer possible for the government and other regulatory bodies to control it or to rescue the elements involved. The credit market was being propped up and analysts were speculating that it was not long before the situation got even worse. Ironically, the most prominent contributors to the increase in damage being caused to the economy were because of the massive influx of capital that had made its way into the US economy. At the time when the influx of capital in the US economy was at its peak, it was highly appreciated and encouraged at that time but took the frame of perception had changed completely now. The crisis had taken origin in the real estate market and slowly spread out in the economy. The damage being caused by the deficit began to multiply.

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