Why do some people deny the economic crisis? How would you respond to them?

A lot of people do not believe it because they were taught that the federal reserve was created to prevent this from happening.

Which as we all can see is a complete falsehood.

The way I would respond would be, look at the way the stokes went up and down (mostly down) in the past 4 months. Look at people's spending habits and how much of it was using credit cards and loans. People buying a new car every 3 or 4 years, having to have the latest and greatest.

Look at what the industries have spent money on, and look at what the government has as well.

If it were not a crisis then the Government wouldn't be passing a 700 billion dollar bail out program, that in the end will not do anything because every dollar America gets printed already has debt attached to it because it is lent from the major world banks. So really in the end we are trying to fix a crisis, that was brought around by debt, with more debt.

So yes, there is a crisis, and we can only go for the ride now. We are all strapped in and the ride is already at the peak.

The economy is not collapsing as so many believe it is. I believe that this we as a nation lived in such an "over-inflated" economy for so long, that now that things are getting back down to where they should have been all along, people think we are in a crisis and industry and business are adjusting accordingly. My parent's paid $75,000 for their house in 1997. My mom had a real estate agent a few years ago say to her, "If I wanted to sell your house quickly, I'd start it out at $152,900. But if I wanted to hold out, we could hold out for between $180-$200,000." So now a house has gone up that much in less than 10 years?

Give me a break!! It is called over-inflation of the housing market. Houses that aren't worth any more than a $100,000 are being put on the market for $250,000.

And in terms of lay offs, so many companies hired so many people when things were on the up and up, and now that things have leveled off or are going down some, there isn't a need for so many employees. That is why layoffs are occurring.