Resolved Question

Second wave to the credit crunch?

I read today that the measures we thought had worked to an extent were doomed to fail because the banks were not passing the money on. So it may have been a false dawn. Now credit card defaults in the US are massive, house prices are not moving and more industries will fail as they can't get money and unemployment will soar s we could go into depression. What do you think? True or not?

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The biggest thing is consumer confidence, if consumers refuse to participate in a recession, then it will be mild. If people start / continue to be tight (protectionist) then things will go downhill. Protectionist policies are not helpful on either a personal or a national level.

This is also one reason that the bailouts were a bad idea. The people have to make this work, the government is kidding us all that they can do it for us.

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Other Answers (4)

• Too many American households could not pay their mortgage, which put the banking/financial system in trouble.
  The injection by the Fed of billion of dollars did show a temporary recovery effect, except that this was not on the expected side: instead of clearing out the toxic assets from the loans and mortgages, banks and other financial entities kept playing with the Fed cash !!!
  Credit card interest are going up to 30% now because the housholds have to pay back the errors of the banks.
  This is truely unfair and the best things that could happen now is that the American financial system collapses and starts again from zero. But nobody on this planet can forecast the world consequences of this event...
• Probably
• Next is commercial real estate.
• True. As the President said it's going to get worse before it gets better. No government can't do it all, and they shouldn't have. The crust of the problem is no honor amoung thieves. The Aig's, big mortgage banks, the big 3 automakers and a host of other stock market giants have proven that private industry can't be trusted if their not watched. The media is churning out half truths to keep their jobs and their media venues afloat causing flustration and panic over important issues that need to be rectified.
  
  Tell me this...why didn't the automakers come up with the cash for clunkers instead of the government? Why are they still advertising autos harping on and on about the bells and whistles of their products and the MPG is still the same? It's because they don't care...that's why they're in the shape that their in. Ford is the only company that's been on track, listening to the people and giving us what we want. That's why they didn't need bailout money.
  
  Everybody's looking to make a killing and they don't care who they step on to get it done. I thought at first that the bailouts were a great idea, but all the government did was hand over money to the fox guarding the chicken house. They still want to pay out huge bonuses to undeserving degreed theives.
  
  Yes the next arena is commerical projects and lenders. I heard that casino building in Vegas is at a stand still...this is unheard of.
  
  I don't think immigration will be an issue anytime soon. You'd be shocked at the amount of illegals that have FHA loans. FHA did not bother to check the validity of social security numbers before issuing out home loans by the truck full. If we deport them the amount of foreclosures will definately lead to a depression.
  
  We, the common man, are no more than sheeple to the rich and media. To be lied to and fleeced at will. The more time we waste on the likes of Congressman Joe Wilson, Kayne West and other pettiness, the less time spent watching what's really going on behind the madness.
  
  Hold on to your seats 'cause we're still in for a bumpy ride

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