those who are banking on Q4 recover, you are going to be very
disappointed.
this recession would at least last beyond that.
the stimulas package that dish out by various govt are not
really going to work wonders. various forumers has already pointed
out the amount of toxic asset that the banks still hoarding will
make the problems worse.
The TARP that initally set out USD 700billion has already spent
350billion on various bailout but some top economist think another
1 trillion USD could be needed to clear out the all the toxic
assets that these banks still hoarding. but then if the housing
prices has not bottom how do they value this assets?
i strongly believe, credit cards defaults is definitely on the
rise , banks will have to prepare provision for bad debts , further
reduce their ability to make loans dispite govt help.
jobs loses are mounting in the US and across the world, housing
pricing are falling across the world. if both dont stop, the credit
crunch will get worse.