"The growth in bank loans has turned negative" (while) "the overall debt burden in the US economy is currently at record levels, raising concerns that a recession - if it occurs - could set off a sharp downward spiral."... http://www.globalresearch.ca/index.php?context=va&aid=9922
The Fed will have to cut the Fed Funds rate much more as severe downside risks to growth and to financial stability will dominate any short-term upward inflationary pressures. Leaving aside the risk of a collapse of the US dollar given this easier monetary policy the Fed Funds rate may end up being closer to 0% than 1% by the end of this financial crisis and severe recession cycle."
Interest rates are going down not up as the futures market believes.
"The recent plunge in M3 (ed.--M3 is the broadest measure of money used by economists to estimate the entire supply of money) makes it likely that credit lines have been fully tapped and/or banks have simply turned off the spigot. Liquidity shrinks by the day. Banks scrambling to refinance long-term debt are going to have a very tough go of it. Weekly unemployment claims are soaring. Consumers out of a job are going to have a tough time paying bills. Those looking for a bottom in these conditions are simply barking up the wrong tree."
Anderson said in the interview that too many people in the post-Depression era generations "play the accumulation game" to see "who can buy the most toys." But he said most people who play this game never feel like they win because "they always want more toys."
His parents taught him to "play another game," one whose object is to "see what we can really live without."
http://www.kentucky.com/211/v-print/story/500123.html
The sheer volume of this nation's national debt, consumer debt and war debt are beyond most Americans to envision. Trained by generations of "we put a man on the moon and we an do anything" mentality, the concept of economic and social collapse is beyond our ken.
http://www.indybay.org/newsitems/2008/08/24/18529280.php
The old joke was that Vermonters were already so poor that they barely noticed the Great Depression. http://www.timesargus.com/apps/pbcs.dll/article?AID=/20080824/NEWS01/808240387/1002/NEWS01&template=printart
http://online.wsj.com/public/article_print/SB121944152471364675.html Honest Central Bankers...
...Would Admit Mistakes Today's Financial Mess Is Largely Result of 3 Errors
