I agree there are problems, but the sky really is not falling. There are far too many protections and protectors built into our economic system for this to seriously effect our economy for much longer. One of those is the Fed. and they have made it quite clear that they will not let this situation get out of control. In fact, just today one of the Fed. Governors spoke to the issue:
WASHINGTON (AP) - The Federal Reserve will do whatever is necessary to prevent damage to the economy from the credit crunch that has gripped Wall Street, a Fed official said Monday, warning it will take time for financial markets to fully recover from the strains.
Fed Governor Randall Kroszner's remarks came as fears about the credit crunch and a painful housing slump have gripped investors in recent months, causing stocks to nosedive. Wall Street took another sharp plunge—366 points—on Friday. The Dow Jones industrials were down again in trading Monday, though not as sharply as Friday.
"The Federal Reserve will continue to monitor developments in financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability," Kroszner said in a speech here to the Institute of International Bankers.
It is the same pledge that Federal Reserve Chairman Ben Bernanke and other central bank colleagues have been making in the past months. That is, to keep the economy growing and inflation under control...
Fed Official: Bank Will Protect Economy
The only domino's we have to worry about are the ones on the table in front of us...
