 Posted: Fri 15:38, 04 Oct 2013 Post subject: America's Credit Catastrophe-spun4 |
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| America's Credit Catastrophe
This, the shaky American economy didn't need. If an imploding housing bubble and energy price superspike weren't damaging enough, our ailing financial system chose to slide into full cardiac event. Even though the White House,[url=http://duveticajacketsoutletjp.albirank.net/][b]ダウンジャケットレディース[/b][/url], Congress, and Federal Reserve have all shifted to DEFCON 1 to try to deal with the exploding credit crisis, even the perfect mixture of fiscal and monetary policies seems unlikely to now avoid the worst recession in a generation. As JPMorgan Chase summed some misconception in a note to its clients: "The fat lady sings." The whole financial fiasco has moved far beyond liquidity problems on Wall Street. "This is the big one biggest economic crisis since the Great Depression," says financial historian Niall Ferguson. 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Just take a look at Japan, where a financial crisis in the 1990s resulted in the infamous "lost decade" of economic stagnation. Splat! The credit crisis has landed firmly on Main Street, and here is how it is affecting most of us: The Homeowner Think about credit because the Benedict Arnold from the housing implosion. After all, cheap and abundant credit breezy lending standards and subprime loans? a turbopump for the housing bubble, allowing even folks with checkered credit histories to obtain the experience and bid prices higher. But amid the market's painful collapse has dragged home values some 20 % below their 2006 peaks has switched teams. Now, a reduction in the provision of mortgage credit is putting additional downward pressure on the housing industry and threatening to extend the worst housing slump since the Great Depression. "The same credit explosion that was driving up home values will work toward driving them down," says Harvard economist Kenneth Rogoff. 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