Sunday, September 8, 2019
Are we in recession and what effect will it have on the middle class Research Proposal
Are we in recession and what effect will it have on the middle class - Research Proposal Example This shows how many factors can work together to create a holistic idea about the current state of the economy. Many look to the mortgage industry and its impact on financial sectors for a more specific answer. The mortgage industry is currently affecting the consumer and banks in complicated ways. There is a lot of media coverage about it and there is at times the atmosphere of panic, with economists over-valuing the impact of the current mortgage industry and also predicting things that are in no way true. However, a recession is denoted by six monthsââ¬â¢ continuous drop in GDP, whereas the GDP has actually grown in recent quarters. Therefore, the impact on the consumer may be over-valued, but in any case, the recession has left lasting effects. ââ¬Å"Home prices are now deflating at a 32% annual rate versus 8% six months ago. And the deflation is sure to intensify as the 4.6 million new and existing homes still sitting on the market find a clearing priceâ⬠(Up, 2010). Th e mortgage industry currently also affects other zones of enterprise other than the middle class consumer, such as financial intermediaries including commercial banks.
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