The paper provides information about the current scenario in the United States pertaining to the economy and the different sectors operating in it. The main point of discussion that has been evidently discussed in the articles in Newsweek and Business Week edition of late relates to the imminent recession that has been facing the United States since 2005. The following paper provides detailed information about the housing and mortgage market and how its driving the recession in the country.
In the past few decades the demand for housing and real estate in the country has increased dynamically due to the economic boom that was being experienced in the region and the changing dynamics and demographics of the population. The lending by the mortgaging and the leasing companies into the sub prime market for capturing the demand have led to a recession in the US economy. This is due to the fact that the sub prime market has not been able to pay back on its mortgages on a mass scale resulting in a downward push on the dynamics of the market and an upward push on the prices in the market. “With the sub prime crisis in the US is about 90% over the banking stocks like the US housing market which had been bottomed out, there is still worse to come.” (Drennan, 2008)