Posted Thursday, September 25, 2008
Featured on Episode 2 of the 2008-2009 season
The trouble began a few years ago, when many Americans started borrowing money to buy new homes, even though many of them couldn't afford it. Now they can't make their payments. That's why you might see some abandoned houses in your city. Big banks, like the ones in New York City, lent them money, and charged them some pretty hefty fees. Now the people can't back pay the banks, and the banks can't pay back the money they borrowed. A few giant banks have already had to close, so the federal government is stepping in to help. It's a difficult time, and many people are learning hard lessons about spending money they don't have.
National Public Radio
PBS NewsHour
NewsHour for Teachers lesson on the role of the president in the economy
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