2008 Economic Crisis in the U.S. and media connection Assignment

2008 Economic Crisis in the U.S. and media connection - Assignment Example While millions of people have spent their lives adhering to this American dream, there have been periods throughout our history where tireless amounts of work and sacrifice have not been able to stop the economy of this nation from crashing down upon the very people who work endlessly to build it. Nearly five years ago, 2008 was no exception as the core of the American economy crumbled beneath the people of this nation who were standing upon it to bolster their careers, their lives and their homes. As this recession immediately spurred talk of the next Great Depression, the American people as well as the rest of the world watched in varying states of horror as the media depicted an economic downfall which the country was not prepared for. The purpose of this paper is to establish that the America people give the media almost an absolute power in determining what we believe, see, think and feel about the world around us. In order to demonstrate the proposed goal of this literary work, the following pages will first define the â€Å"economic crisis† the country faced and then will break into discussions on how the media covered the events which unfolded in the midst of such a crisis at both a national and international level. Economic Crisis Upon its arrival, the 2008 economic crisis left families decimated and crippled the financial outlook of this nation. As soon as the reality of what was happening became apparent, the media became fixated with determining a cause and definition for this crisis. Initially after the crisis, news media turned to the experts and featured a high number of guest experts who could immediately pinpoint causes of the economic situation. One such example comes from the Accuracy in Media group with a guest column from financial expert James Davis. According to Davis, an international bank analyst, the complete downfall which caused the 2008 financial crisis was caused by faulty bank lenders (2008). From a media perspective, using these analysts in such a heavy rotation placed incredible emphasis on their words to the public. Essentially, whatever reasoning these analysts were giving were becoming the scapegoats of the financial crisis with heavy rotation of media coverage. In 2011, the New York Times was able to compile and pinpoint key causes of this economic crisis. According to the article, the economic crisis can be defined as the combination of â€Å"widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street,† (Chan, 2011). In addition to these components, the New York Times also highlights that the key parts of these economic failures included a factor of American life which affected nearly all people in the country – the real estate market. As Chan wrote, the economic crisis can be defined as a â€Å"calamitous concoction – shoddy mortgage lending, excessive packaging and sale of loans to investors and risky bets on securities b acked by the loans† (2011). With the gravity of the situation recognized by news organizations, the chain of events was quickly dubbed an â€Å"economic crisis† as the amount of families standing to lose their homes was staggering. According to Baily, Litan and Johnson in â€Å"The Origins of he Financial Crisis,† the issues which were at the center of the economic crisis included faulty lending practices in the form of adjustable rate mortgages (ARMs) and allowing homebuyers to purchase homes with no money down, substandard financial portfolios and credit default swaps (2008). As the housing market buckled in the wake this crisis, financial panic spread through America with