Steven Pearlstein of the Washington Post gives his summary of the current financial crises.
He explains what is going on with the banks- they’re hoarding their cash to build up their reserves…
Americans also consumed too much during the wild peak years- hence too much money was spent on the wrong things..
This recession (I keep using that word) is worldwide, and isn’t just an American problem…
Pealrstein explains the problems in a simple way that is easy to understand.
I used to think all of this was rocket science, but I don’t anymore.
It’s pretty basic. If you spend more than you take in, without saving, you’ll have to reap the consequences later. That’s where we are now, and the holidays won’t be very jolly for a lot of people.