All signs point to a really bad time. Companies are posting losses. People are losing their jobs and homes. While economists are all hoping for a recovery real soon, current indicators don’t offer much consolation to the typical American.
Last month, the Federal Reserve decided to channel $1.2 trillion into the economy in an effort to combat the worsening recession. It just shows how real concerns are about the failing market and its effect on people’s buying power to prop up the economy.
The Fed plans to prop up the banking sector by eliminating toxic debt. It also aims to tackle the mortgage crisis by boosting purchases of mortgage-backed securities from real estate giants Fannie Mae and Freddie Mac.
Minutes of the Fed’s closed-door meeting last March 17-18 states, “Most participants viewed downside risks as predominating in the near term.”
Source: MSNBC
