The housing market is one of them, people just are not spending money on houses as they once were, and who can blame them. The housing market is now associated with eviction for some and financial...

The housing market is one of them, people just are not spending money on houses as they once were, and who can blame them.
The housing market is now associated with eviction for some and financial suicide for others. There are entire neighborhoods in states like Ohio that are deserted because of foreclosures. Hopefully QE3 this will help, and while one factor (i.e., toxic debt of the housing market), in and of itself does not mean anything, I think that this is one factor coupled with a slower than desired economic growth, has created a sense of uncertainty in the market, and this has helped to slow economic growth.

Comment my PROF:
Humm... your last sentence is confusing: paraphrasing: slow growth creates uncertainty which causes growth to slow!!!
Which one is the cause and effect?
What are some of the sources of uncertainty?

Comment my classmate:
To clarify, the uncertainty in the economy can be causing the slow growth; so what causes the uncertainty? The political climate in this nation is one factor, the fact that the two major political parties demonstrate a desire to fight with one another rather than working together to develop a solution to the economic problems; another factor is the lack of money being spent and the slow rate of job creation (in comparison to what is needed to fully fix the economic situation in the U.S.), something that could be partly remedied by simply fixing all the decaying roads and bridges in this nation, companies that simply sit on large cash reserves instead of investing some of that money, the economic crisis in Europe (although, I don’t think that most Americans are to mindful of the European financial issue, minus Greece) and the upcoming Presidential election.

Comment my Prof:
You mention the crisis in Europe as a source of uncertainty; there are many other sources of uncertainty originating abroad; can you think of any? In what ways do they affect investment by business firms and consumption by households?