United Nations Downfall
Friday, September 25th, 2009
The United Nation is facing a severe economic slowdown in its history. The reason behind this is mainly because of the banks. The current economic crisis led to financial slowdown and bankruptcy. In the beginning there was a boom in the housing sector. Many banks offered loans at lower interest rates. They provided attractive loan offers with very low interest rates initially. People got the loan to buy homes with the idea of repaying the amount after the shorter period due to the abrupt boom in real estates value. Many people who do not have proper income were eligible for loans. It is referred as subprime loans. As a result house owners increased the rate to high values. Consequently there was a colossal number of homes came up. After which there was a steady decline in the housing value. The people started to leave the house instead of paying the huge value.
The top bankers announced bankruptcy. Lehmann brothers, one of the largest banks announced bankruptcy. Citigroup and Merrily Lynch were badly affected by these subprime loans. As a result there was an economic and financial slowdown. Since banks are the prime sources for many businesses, each and every other sector also faced the slowdown. Many countries started facing this crisis soon after it reached its peak. It ultimately led to job losses. Every industry sacked the employees. The Job rate decreased to a great extent. In many countries child labor problem came into the picture again. People started to send their children back to work. We must go in the right track without any unnecessary deviations otherwise the result would be like this crisis.

