IS the Perfect Storm About To Hit Consumers? Hmmm.....

[Blackhatjack]

Financial Institutions are getting Billions of taxpayer $$ to shore up their losses from making 'bad deals.' Insurance Companies like AIG are 'too big to fail' so they get their Billions. Big 3 Automakers are about to get their Billions because they cannot sell their ill conceived autos in this economy.

However, consumers are drowning in debt, and cannot catch a break. Credit Card Companies are 'gutting' consumers with insanely higher fees, and withdrawing $2 Trillion in credit lines. This after home equity loan lines of credit were 'pulled' because of declining values in real property. Add to the mix the loss of huge numbers of jobs, and skyrocketing costs for healthcare and energy.

So while all those getting their billions in taxpayer $$ are taken care of, where is the American consumer?

Being pushed directly into default and bankruptcy, helped along by the oppressive policies being implemented by the very entities who are feeding at the trough of public taxpayer $$$.

A 'gutted' consumer is left with little to contribute to a healthy economy, and it likely will take many years for them to recover, if ever.

Unless there is some aid directly to those at the bottom of the financial pyramid, and some regulation and transparency imposed on those from the top down, we are looking at a very difficult time just ahead.

[ewagner]

1. Pretty accurate, I think

That's why I'm hoping that the "infrastructure" rebuilding stimulus package does what it is intended to do....infuse more employment and therefore more wages, taxes and cash into the system from the bottom up.


I think that might work...at least its the only thing that makes any sense to me....

[Cronus Protagonist]

2. We're seeing the whole financial system collapse

And throwing billions at the perpetrators is the most insane thing to do about it.

[The Backlash Cometh]

3. We have been victims of crime for some time. This is just more collective than most.

However, some of us are just more aware of our surroundings than others. It has been going on at some level or other for sometime. I'm just wondering, though, when is Obama going to come up with a Patrick Fitzgerald type hotline where we can send in our grievances for local malfeasances which have political cover?

[Blue Meany]

5. Better yet, I hope puts white collar financial crimes in the same

category as drug crimes, so that the assets of the criminals can be siezed,and offers a percentage of recovered funds to informants in cases of political corruption and financial fraud.

[cottonseed]

4. I heard the folks on MSNBC say there is now bail out fatigue.

funny that it hits about the same time those funding the bailout's get close to needing their's.

[xiamiam]

6. I am one of those about to collapse under this burden...

a few years ago..I was speculating..buying junker houses and fixing them up....in california..where an entry level home was around 600k..add the costs of new roof, plumbing etc..its a lot of work no matter what anyone thinks..then I was diagnosed with a strange rare disease ..had surgery and radiation..put me down for over a year...about 18 months when you add the rehab to use the leg which had surgery...still kept everything together..selling the houses was a low priority since getting out of pain and saving my leg was the only thing i could think about..values have been hit hard and i owe more than some of the houses are worth..20% down on mortgages..lost money?..probably...then this summer wamu pulled my home equity line..perfect credit..never late...20 years of tap dancing to keep things together..I work on commission in real estate which was virtually non existent when i was ready to work again...so no money..no cushion...the crap has hit the fan..I'm 58...female..single..hard working...before sunrise to after sundown..everyday...doesnt matter...there is no money for help...i was middle class...had my retirement plan together ...thats over...i think im just the tip of the iceberg..i havent posted this before...im always ready when i see threads blaming the victims...the immigrants who bought houses with o money down..thats the talking point..thats what they want you to believe imo...its a bunch of bull...

[Julius Civitatus]

7. Right on! - n/t

[Danascot]

8. State and city governments are next

They borrow to finance a lot of their spending and projects. Higher interest rates are making borrowing more expensive and municipal bonds are being downgraded, further raising borrowing costs. Tax receipts are down. The states are cutting some funding that the localities are forced to pick up. It won't be long before they're declaring bankruptcy and coming to the treasury for their bailout.