FinReg has 2,300 pages, with lots of new agencies, and rulemakers writing rules that your bank will need to comply with. So the nervous lenders stop lending completely.
The admin starts a rumor that Fannie and Freddy will forgive billions in loans, so why pay back debt you have. Echos of the Auto Bondholders that got the O'shaft. Who would lend if there is no confidence the borrower will repay.
Self Employed shopowners are barely making ends meet with the minimal traffic. Those EVIL building contractors have less than 1/2 the normal work, this goes much further and they will fold their tent.
Any employement growth will be in hours worked, it is pretty easy to back off when things slow down. We have made the bennies so expensive that it is cheaper to pay overtime then add a worker at straight time.
We are in for a rough ride - O's next stimulus is to boost taxes come January, Oh Joy
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Jay Kitsap of WA 1:28PM August 06, 2010