[quote=stabbedheart]this issue is in the news right now... but i'm getting confused with this issue what's the reason behind this falling economy? and philippines and other countries are getting affected in it[/quote] Well...I am no economic expert, but there are many different issues which have contributed to the United States' economic crisis. One major factor is that back in the late 90s banks and mortgage lenders began persuading people to buy homes that they could not reasonably afford. These banks were urging people to take out loans for, for example, a $300,000 home when in fact the person could "truly" only afford a $100,000 home. This, in return for their persuasions, entitled the bank executives to gain outrageous bonuses for themselves despite the fact that they were misleading their clients. This is just one example, but a major factor. Also, during this time (in fact, all year long), the value of the dollar has been in decline. Actually, there has also been a global inflation in almost all monetary currencies, which has also led to the decline of the global economies. The reason that the fall of the economy in the United States is affecting other countries' economies is because of globalization. There is a global economy. Honestly, I cannot thoroughly explain this to you because, as I said, I am certainly not an expert. The economies of every country are sort of "tied into" each other. When a major economy (i.e. U.S.A., Europe, Hong Kong) does well, the rest of the world does well, too, for the most part. When a major economy suffers a crisis, all economies are influenced. The same is true when, for instance, the Hong Kong economy declines, so does Europe and U.S.A. as well as the rest of the world. I probably make no sense and may have confused you more, but I was trying to put into my own words. Globalization is a tough issue for someone to explain when that person (me) is not thoroughly caught up to all the details. I did my best, though. If you are in school, you should ask one of your teachers and he/she could probably give you a much better explanation.