Impact of Financial Crash

Financial crash posted adverse econ effects not only in the United States but also the global economy. The resultant effects of this crash trickled down to all individuals in the states regardless of age. Both young and older people felt the impact of the crash. Majority of the families in the state suffered severely due to a reduction of income. At a personal level, financial crash impacted severely on my own income, family income and individuals who also relied on employment.

At the occurrence of the crash, most people in the states suffered the blow of unemployment, and I was rendered unemployed after working for more than a year. The tourism industry, which was my employer suffered significant loss resulting in loss of income. Consequently, my close family members were also laid off, causing severe financial distress in the economy. As a result, there was a significant loss of income that affected our consumption and investment. The family was forced to reduce their level of consumption as the level of income reduces. My father, who had been employed for a long time, had his retirement savings reduced significantly and had to seek unemployment benefits from the state.

Additionally, the majority of the individuals who had acquired mortgage loan to acquire houses began defaulting in the loan payment. As many homeowners defaulted in payment of the mortgage, banks began reacquiring the homes which had been had collateral. Majority of my neighbours suffered this blow and lost their homes. Consequently, Edward Brown, a neighbour who had ventured into entrepreneurship and ran a consultancy firm, had his business in financial crisis occasioned by limited cash inflow and was forced to close the business. Overall, the impact of financial crash affected all individuals in the states suffering the cost of unemployment, loan default, and loss of retirement benefits and closure of the business.