Domino Effect

1.How is the "domino effect" affecting the global economy?
It is effecting our economy because it started with the lending out money to people who don't have money to pay and now they haven't paid back and we don't have any money.
2. What caused the U.S. housing crisis?
It started out by lenders giving high risk loans to people with low incomes. The people couldn't pay their loans back so the prices of the house dropped.
3. Why is the cut in consumer spending a serious pr0blem?
It is a serious problem because now the people are going to make fewer merchandise since people aren't buying.
4. How is less spending affecting local and state governments?
It is affecting the local and state governments because it has made a drop in the sales tax revenue.
5.What trend does expert Brian Sack predict for the economy?
He predicts that this economy is going to be an hard one to come out of. That also it is hard to avoid a recession.
6.What have the world's key central banks done to stop the crash?
They stopped lending to each other. Britain was forced to rescue many of its banks, spending $865 billion.