Argument of After Shock Essay Example | Topics and Well Written Essays - 1750 words

Argument of After Shock - Essay ExampleThe book Aftershock is a manual that illustrates the declining state of US economy, its consequences and afterwards effects although the authors justly verify the purpose pf the book as stated in the text, It s only bad peeleds for your personal economy if you forefather t do anything about it Hence this book suggests methods and remedies through which personal economic damage can be minimized even when the economy on the whole is precipitationing apart. As the authors say in the book, All we can offer is realism, based on facts and logical analysis (10) and the rest depends on the proofreader and his interest in benefiting from the writers perspective Every fact that is stated in the book is based on, a reliable theory of economic evolution, backed up by cold, hard facts, and not random guesses (11). So such an analysis helps in providing the readers an in depth and logical account of the current situation. The writers use the belief of a Bubble as a metaphor to illustrate the unpredictability and the temporariness of the economic conditions of the United States. As stated in the text, economic bubbles, by nature, do not stay afloat forever. Sooner or later, economic reality, like gravity, eventually kicks in, and bubbles do fall. After they burst, they never are able to re - dramatize and lift off again (4). In their point of view the US economy comprises of six bubbles, These bubbles included the real estate bubble, stock market bubble, discretional spending bubble, dollar bubble, and regimen debt bubble (5).... The fundamental advantage of this bubble economic system was that, these six linked economic bubbles helped co create the States s booming bubble economy these bubbles helped us ignore slowing productivity growth, boost our prosperity, disregard some fundamental problems, and keep the party waiver (31). However once the decline started there was no possible solution to stop the decline and this decli ne is explained in the following words in the text, First, we had the fall of the U.S. housing bubble and its downward impact on the stock market bubble, the private debt bubble, and the discretionary spending bubble Next, in the Aftershock, the dollar bubble and the U.S. government debt bubbles will begin their unavoidable descents And as the final bubbles in Americas bubble economy begin to burst, so will the worlds bubble economy (33). The real estate or the housing bubble was the first pillar of the economic system that collapsed because the price and expenditures of making a new house increased greatly and outpaced the increase in an individuals salary and eventually its decline started in 2006 and hence resulted in the rest of the tumble of the economic system. The private debt bubble involves the bank loans and the mortgage payments. When the stock market and the housing economic system crumpled the private debt sector also suffered a severe shock that ultimately led to its decline. The discretionary spending bubble is concerned with the total sum of money spent by the consumer. However cod to recession when people started losing their jobs and the rate of unemployment increased consequently people started cutting their