Does the following sound fimilar?...
"This is an extraordinary period...Over the past few weeks, many...have felt anxiety about their finances and their future. I understand their worry and their frustration. We've seen triple-digit swings in the stock market.
Major financial institutions have teetered on the edge of collapse, and some have failed. As uncertainty has grown, many banks have restricted lending. Credit markets have frozen. And families and businesses have found it harder to borrow money. We're in the midst of a serious financial crisis...
First, how did our economy reach this point?
For more than a decade, a massive amount of money flowed...from investors abroad, because our country is an attractive and secure place to do business. This large influx of money to... banks and financial institutions -- along with low interest rates -- made it easier...to get credit. These developments allowed more families to borrow money for cars and homes...some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.
Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit -- combined with the faulty assumption that home values would continue to rise -- led to excesses and bad decisions. Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.
Optimism about housing values also led to a boom in home construction. Eventually the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell. And this created a problem: Borrowers with adjustable rate mortgages who had been planning to sell or refinance their homes at a higher price were stuck with homes worth less than expected -- along with mortgage payments they could not afford. As a result, many mortgage holders began to default...
The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses...found themselves saddled with large amounts of assets they could not sell. They ran out of the money needed to meet their immediate obligations. And they faced imminent collapse. Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up...
The government's top economic experts warn that without immediate action...could slip into a financial panic, and a distressing scenario would unfold: More banks could fail... The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet.
...ultimately, our country could experience a long and painful recession...
Our economy is facing a moment of great challenge."
Could be talking about Ireland! - In fact it's some of George Bush's speech to American's about the problems facing the US economy.
"This is an extraordinary period...Over the past few weeks, many...have felt anxiety about their finances and their future. I understand their worry and their frustration. We've seen triple-digit swings in the stock market.
Major financial institutions have teetered on the edge of collapse, and some have failed. As uncertainty has grown, many banks have restricted lending. Credit markets have frozen. And families and businesses have found it harder to borrow money. We're in the midst of a serious financial crisis...
First, how did our economy reach this point?
For more than a decade, a massive amount of money flowed...from investors abroad, because our country is an attractive and secure place to do business. This large influx of money to... banks and financial institutions -- along with low interest rates -- made it easier...to get credit. These developments allowed more families to borrow money for cars and homes...some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.
Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit -- combined with the faulty assumption that home values would continue to rise -- led to excesses and bad decisions. Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.
Optimism about housing values also led to a boom in home construction. Eventually the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell. And this created a problem: Borrowers with adjustable rate mortgages who had been planning to sell or refinance their homes at a higher price were stuck with homes worth less than expected -- along with mortgage payments they could not afford. As a result, many mortgage holders began to default...
The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses...found themselves saddled with large amounts of assets they could not sell. They ran out of the money needed to meet their immediate obligations. And they faced imminent collapse. Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up...
The government's top economic experts warn that without immediate action...could slip into a financial panic, and a distressing scenario would unfold: More banks could fail... The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet.
...ultimately, our country could experience a long and painful recession...
Our economy is facing a moment of great challenge."
Could be talking about Ireland! - In fact it's some of George Bush's speech to American's about the problems facing the US economy.