US Economy is Bottoming Out

Recent figures released by the US government have shown that the rate of decline in the US economy is finally starting to bottom out.  In the first three months of 2009, the rate fell to 5.5% which was considerably less than the government’s estimate figure of a 5.7% decline in 2009.

In the last economic quarter, the annualized rate of decline was around 6.3%, so these changes come as a sense of hope to the US Government and the debt stricken American banking institutions, but whilst this is remarkably good news for the US economy, falling exports and reduced consumer spending continue to hurt economic growth and uncertainties still remain.

Recently, doubts surfaced regarding the solidarity of the economy after an unexpected increase in jobless benefit claimants appeared because of poor estimates which resulted in a 5% rise, or an extra 27,000 people more than expected filing first time claims at the Labor Department.

Amongst the American people, the general consensus is that the recession has not eased.  Even though we have seen slight moderation in the rate of decline, a large number of economic analysts and American citizens are still sceptical about the reports stating that we have finally hit the bottom of the worst economic crisis since World War II.

Recently, the US government revealed radical new reforms to try and provide additional oversight to the financial institutions of the United States.  The general consensus amongst many is that the shady sub-prime market helped fuel the crisis which has affected so many millions of people.  Allegations have recently arisen against popular bank Wells Fargo about their less than honest banking practices, after whistleblowers detailed that the bank took advantage of poverty stricken African Americans, using the church as leverage in their bid to attract customers.

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