The Domino Effect

Ejazz Shamid
EDUC 108 MO3
1.How is the "domino effect" affecting the global economy?
The Domino Effect states that one thing leads to another. Therefore when our economy is going down other countries will star to suffer as well. For example Global banks stopped lending money to each other as well.

2. What caused the U.S. housing crisis?
The housing crisis started with lenders handing out high risk loans to low income people.

3. Why is the cut in consumer spending a serious pr0blem?
Less people will buy goods, which will slow down the economies spending.

4. How is less spending affecting local and state governments?
Governments are cutting programs.

5.What trend does expert Brian Sack predict for the economy?
He sates that the problems will be hard to come out of.

6.What have the world's key central banks done to stop the crash.
The worlds key central banks Banks are Starting to work together to stop the crash. They did this by cutting interest rates at the same time.