Unemployment: One of the biggest problems to come as a result of this recession is the unemployment that it has caused.  Many companies are finding that they have to either close their doors permanently or make some drastic cuts in size.  Some, like Chrysler, are even being bought by overseas companies and taking their jobs elsewhere.  With major companies like Circuit City closing and others like Petco having to reduce the number of stores, the job market has been crippled.  Some economists are being led to believe that the market is rebounding with the unemployment roles shrinking, but they may be a little deceived.  Other studies have been conducted that would point to things being even worse.  The jobs are still gone but the people have now run out of unemployment benefits.  This means that they will now have no income, and the jobs are still not there.  The surge in welfare recipients would also point to this second theory.  The sad truth is that people are still jobless but getting less help. 

Healthcare: There is a lot of talk about healthcare right now.  Everyone is worried about not having it and with the economic troubles we are having at this point, no one can afford it.  It seems like everyone has a solution but none of these answers fits.  There is the idea of a national health care system modeled after several other countries, but the government does not have the money or the ability to get the money that it would take to incorporate this idea.  Another idea is to make all employers cover every employee.  That would work for many but with all of the unemployment in this nation, not everyone would be covered.  There is also the fact that 98% of companies are small businesses.  Many of these shop owners are barely able to fight off bankruptcy, let alone fund health care for their employees.  It would be nice to have a national umbrella of healthcare, but at this point, no one has the money to cover their own healthcare, let alone enough for the entire nation. 

Bailouts: It seems like every time you turn around companies are failing.  Normally, this would not be a problem since another would spring up to take its place.  That does not hold true right now.  Banks, major auto producers, and almost half of the industry that this country depends on for jobs and survival have been collapsing.  This has prompted the bailout system where the government now has to step in and shell out some massive money to keep our nation alive.  The big problem is what happens after we emerge from these dark times.  There is really no right answer.  There are more and more bailouts being made available for different industries so that this country does not go back to a depression, but that floods the market with cash.  This may sound good right now, but the latest reports from top economists are very grim.  Without the bailouts, there will be no money for anyone and no jobs to make ends meet.  With it, inflation will be at an all time high and prices will be two to three times what they are now when this is over.  If things keep going at this rate, it may not be far off from “Back to the Future II”.  It is very feasible that a can of soda would sell for $50.   

Foreclosures:  The housing market gave a quick flicker of hope as it gave a little jump in the right direction in April, but that was quickly doused.  It now appears that the few investors that actually have money were grabbing the cheaper foreclosure properties for future assets or rentals.  The real truth is that the foreclosures have still been going on.  They have begun to slow over the past few months, but that is more due to the fact that everyone has already lost their home and there are not that many left to go into foreclosure.  The reality is a dark and dismal place.  It would appear that the waiting list for families to check into the local shelters has grown tremendously.  As the homeless shelters fill way beyond capacity, more people are losing their homes.  With the foreclosures growing and banks faltering, fewer people are being given any type of credit as well.  This means that less homes are being sold, causing more foreclosures as people wait to sell.  The rentals are still over priced since the costs of everything are rising and with no jobs out there, no one can rent anymore either.  Many housing developments and condos are having to return deposits as the sales are too stagnant to sell enough units for financing.  There are several development companies that have had to stop mid construction and refund deposits from the handful they did sell.  Soon everyone will be living in tents as the buildings stand empty. 

Stimulus:  After a deadly drop in the market, the government is doing all that it can to keep the economy afloat.  With banks failing, automakers going belly up, and just about every other industry struggling to survive as well, something needs to be done.  No one has money to buy any extras and barely enough to purchase the necessary things in life.  Injecting money, tax breaks, and programs that offer aid to struggling families may be the only answer.  Handing out a check to every American can get really expensive for the treasury, and may even have some very detrimental after effects, but there is really nothing else that can be done at this point.  We need jobs to make money and pay taxes.  The lack of jobs forces the entire nation to shut down.  That means that we have to keep the major companies and banks alive.  There is no other way than to give cash.  If we give the cash to the consumer, this causes the needed industries to survive and allows the consumers to choose which goods they want to keep at this point.  This is easily accomplished by giving the stimulus directly to the consumer.  No matter who the consumer is, most, if not all of the money, will go to the banks and the major industries in this country.  With the low amounts of cash that the average person has, they will need to spend the stimulus they are given.  This will allow the businesses to hire more people and buy what they need for their business.  This then results in more major industry boosts and even more jobs to meet the demand.  Eventually the jobs are back and the money is put in the bank at least once.  This allows the banks to start lending more and earning more profits. The increase in credit approval means more money being injected into the market and the stronger the economy gets.