All civilization has from time to time become a thin crust over a volcano of revolution.

- Havelock Ellis

Bad & Honest

For those looking to understand how the "crisis" occurred and how the over leveraged consumer tipped the ship:

Pastrick said a return to normal market conditions in North America until late 2011 or 2012. “This is the worst financial crisis in decades. It is a once-in-a-lifetime crisis,” Pastrick said. “If anything, I’m underestimating it.” [Take a moment and Read the short article]

Concludes:

“Studies have shown that for every $100 change in equity wealth, it has a $1 to $2 impact on consumer spending. For every $100 change in real estate wealth results in a $6 to $8 chance in consumer spending, “ Pastrick said. “Retail sales have been flat in 2008. (And) I expect the coming Christmas season will be below average.”


posted at 01:25:23 on 12/11/08 by clearpolitics - Category: Economics - [Permalink]

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