Friday, March 21, 2008
Wall Street may have seen a recover yesterday, but those on Main Street may have to wait awhile for their relief. The Fed's move to lower interest rates, the bailout packages, and other measures have all helped companies at the expense of consumers. In fact, the same companies that hurt consumers in the first place. Meanwhile, shareholders are also stuck footing the bill while executives fly out in golden parachutes. The lower dollar, credit card defaults, bankruptcies and foreclosures may last for at least the next year, all while the burden has been shifted from Wall Street to taxpayers.
From The New York Times:
In Seattle, sales at a long-established hardware store, Pacific Supply, are suddenly dipping. In Oklahoma City, couples planning their weddings are demonstrating uncustomary thrift, forgoing Dungeness crab and special linens. And in many cities, the registers at department stores like Nordstrom on the higher end and J. C. Penney in the middle are ringing less often. With Wall Street caught in a credit crisis that has captured headlines, the forces assailing the economy are now spreading beyond areas hit hardest by the boom-turned-bust in real estate like California, Florida and Nevada. Now, the downturn is seeping into new parts of the country, to communities that seemed insulated only months ago. The broadening of the slowdown, the plunge in home prices and near-paralysis in the financial system are fueling worries that what most economists now see as an inevitable recession could end up being especially painful.

3/21/2008 6:42:07 PM UTC  #    Comments [0]  |  Trackback