Economy drop?

Question

I have heard on the news how the economy is dropping. Why is it dropping and how did it start?

Answer 1

The economy is cylical by nature, and the housing, loans just got out of the hand, and the market slowly correcting excessive lending. Still, the other sectors are healthy overall, but if spillover from bad loans in the housing market occur it could slow the economic growth 0.2 to 0.3% for the year. I see the economy doing better in later 2008 and this year will be slower growth year for the American economy