You have probably heard something in the past few days about J.P. Morgan, The largest bank in the U.S., reaching some sort of “settlement.” What exactly does this mean? Well, let me give you the short and sweet synopsis.
First, I think it is important for you to know that there was a financial crisis in 2007, 2008, one that we (the U.S. and foreign markets) are still recovering from. J.P. Morgan, as a bank, lends money to people. Essentially what that means is that people buy money from J.P. Moran, because they need that money NOW, promising to pay for it back in the future once they have more funds. The price they pay for getting that money NOW is called interest.
Well, when the financial crisis happened in 2008, people who took out loans from J.P. Morgan before the crisis were no longer able to repay back their debt to the bank. Essentially, tons of people owed J.P. Morgan tons of money that they could not afford.
In an effort to put the turmoil from the financial crisis and the many criminal charges that came with it, behind it, J.P. Morgan reached an agreement with the Department of Justice today to provide $4 Billion in aid to homeowners, which was the last component in a $13 billion arrangement.
So, as you probably know by now, the government is up and running again. Whooo! Problem solved, right? …Well, it is not that easy. While Congress and the President did come to an agreement to reopen the government, that agreement merely put off the need for Congress to set a budget until January 16. If Congress cannot agree upon a budget by that date, we could very well see the Government shut down again- twice within a time span of four months! Therefore, the fact that the government is “up and running” again really does not indicate that any real progress has been made. The government is still spending at the same rate it was before the shutdown, and no budgetary issues were addressed. Essentially, the government put off doing its job.
I have decided to accompany this post with some pictures and explanations of weird consequences of the government shutdown. If you have any comments or questions, please let me know! As always, don’t forget to visit onequay.org!
This one cracks me up: Many local businesses in the Washington, DC area offered discounts to furloughed government employees who were unable to go to work during the shutdown; members of Congress, in many cases, had to pay double!
A search for a 63-year-old hiker at Craters of the Moon National Park was called off due to the shutdown.