While Washington’s financial rescue program may not cure the credit crunch or the U.S. foreclosure crisis, there are numerous palliatives for Main Street savers, taxpayers and homeowners.
Short-term relief is at hand, even if the stock market continues to be roiled and the possibility of a recession looms.
The housing market won’t rebound overnight. Private mortgages for investment properties, student loans, auto and other installment borrowing will be harder to get until the credit crisis is resolved. Credit-card fees and rates will continue to climb, while spending limits drop. All of this will compel Americans and other Western consumers to borrow less, which will contract the global economy.
There’s a bright side to this official end of the Age of Froth, the profligate era of easy borrowing. Cash will be king in a time of pinched credit and increased government deposit insurance. If you haven’t done it already, it’s an ideal time to review your "safe money” strategies.
Click here to read the full article …
