The Economic Situation is Far Worse than Expected. But Why?
Today Henry Paulson, acting in desperation, radically revised the U.S. bailout package. Instead of buying toxic assets from banks, now it will try to inject money directly into the economy by supporting the consumer debt markets directly. Meanwhile, stock exchanges around the world slumped as economy after economy literally fell off a cliff when consumption, quite simply, stopped.
Meanwhile, US credit card companies were canceling millions of credit cards, especially those not often used, and credit card companies were making efforts to justify increasing interest wrates on credit cards by artificially damaging consumer credit.
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