No. of Recommendations: 1
Look at this article in tomorrow's Chrisian Science Monitor

Basically the liquidity problem is short term loans. I seriously doubt there will be much spillover to the real economy, and if there is it will trim a small amount out of growth.

What's more important, I believe, for the real economy (i.e., not Wall Street game players and big banks, about whom I give not a whit) is the drop in housing prices. Much of the growth in cosumer spending over the last few years, with median incomes stagnant against inflation (or worse) was home equity loans or refinancing and paying less for mortgages. That's like so over. So, unless some new way of boosting consumer spending comes along, obviously nothing so radical as giving people who work for a living a greater share of the nation's wealth, consumer spending has to slow. As far as I'm concerned, the harder it is to borrow for people, the better in the long run.
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