"economic impact of the mortgage crisis and credit crunch will be huge, and it has barely begun"

[RedEarth]

NEW YORK (MarketWatch) - The economic impact of the mortgage crisis and credit crunch will be huge, and it has barely begun, a new study prepared by several prominent economists and released Friday has concluded.

"Feedback from the financial market turmoil to the real economy could be substantial," it said. Unless they can quickly recapitalize, banks are likely to cut back their lending to consumers and businesses by more than $1 trillion, cutting economic growth by more than a percentage point over the next 12 months.

The report was released at a forum on U.S. monetary policy in New York in which several senior Federal Reserve officials and economists were participating. Read the full study.

After an initial period where several financial markets seemed immune from the crisis, the credit crunch is now gathering storm.

The report estimates that the credit crunch is expected to push down growth by 1.3 percentage points over the next 12 months.

Almost as alarming is the report's conclusion that this crisis is unique in the annals of U.S. economic history but now may serve as the template for more crises to come.

http://custom.marketwatch.com/custom/myway-com/news-story.asp?guid={09ADCA11-06BF-40C4-98F1-D7CA0A3F847D}

[ixion]

1. but, gee whiz, commander sh*t for brains said it was just a 'slowdown'

guess, as usual, he was a few miles off the mark.

[onethatcares]

3. no, commander shit for brains said

the economy is strong, go shopping.

[lonestarnot]

6. If fuckwad didn't know anything about predicted $4.00/gal gas, why the fuck would he know

anything 'bout the housing crisis?

[Double T]

2. Free Market Capitalism DOES NOT WORK with corporate criminals in charge.

Meanwhile the perpetrators and their supporters of this economic meltdown continue to be in denial about where we are really headed. Nothing will begin to be fixed until a lot of SOMEBODIES admit there is a HUGE PROBLEM.

[acmavm]

4. Thank you! That's the bottom line. You cannot let thugs and

criminals run the show. If you do you have no right to pretend to be 'surprised' when everything goes to Hell in a handbasket.

[femrap]

5. And did you read about FDIC

increasing hiring as well as bringing back retired folks to deal with the all of the upcoming insolvent banks???

eta: It all started w/ Raygun and his policy of fucking DE-REGULATION. Let the fox guard the chicken coop. He bugs me from the grave.

[lonestarnot]

7. Do you have a link to that info? Sure would like to read it.

Thanks in advance.

[femrap]

10. Here it is:

http://www.freemarketnews.com/WorldNews.asp?nid=55240

I have been reading 'urban survival'...and he posts some interesting links.

[lonestarnot]

13. Thank you femrap! Oh this is comforting! NOT

The FDIC is looking to bring back 25 retirees from its division of resolutions and receiverships. Many of these agency veterans likely worked for the FDIC during the late 1980s and early 1990s, when more than 1,000 financial institutions failed amid the savings-and-loan crisis.

FDIC spokesman Andrew Gray said the agency was looking to bulk up "for preparedness purposes." The division now has 223 employees, mostly based in

:puke:

DALLAS

[femrap]

14. It doesn't look pretty, does it?

We are so in debt...but only the banks will be bailed out....again with taxpayers $$...same old game.

Maybe Marx will be proven correct...Capitalism destroys itself. I believe the root is Greed....it has to be regulated.

[lonestarnot]

15. It sure doesn't.

And it's slow going down.

[Mountainman]

9. "He bugs me from the grave." Yeah but at least all he was for the past few was a worm feast!

I hope it there is a hell he is a honored guest there!

[femrap]

11. Karma got to him pretty bad....

we even got to see him suffer here on Earth. I wouldn't wish that on my worst enemy.

[killbotfactory]

8. We should have never let our economy be driven by access to cheap credit

What a scam.

[GeorgeGist]

12. Ah the wonders of capitalism ...

and the economists who have yet to discover it's fatal flaw; profits aren't really free, afterall.