U.S. consumers lose faith in Fed, financial system

U.S. consumers lose faith in Fed, financial system

news.yahoo.com

NEW YORK (Reuters) - The credit crisis has shattered U.S. consumers' faith in financial institutions, including a stunning loss of confidence in the Federal Reserve, and that is likely to trigger the biggest drop in consumer spending in more than three decades and a deep recession, according to a survey released on Friday.

(visit the link for the full news article)

Looks like the MSM can't keep a lid on this any longer. So I guess this makes it official that this is not a small hiccup or correction. Without faith in the system, the system cannot work.

I am wondering if those that haven't hit the panic button yet will after reading this.

I personally haven't panicked but I am dismayed concerned at how bad this possible could get.

news.yahoo.com
(visit the link for the full news article)

Yeah, a ``deep recession``.... they will probably say it was a depression only 20 years after it passed... in 40 years.

Seriously. The medias...

Exaggerated story, my sister is a bank manager and they have pulled in millions this quarter of bank deposits, millions above their expectations. Most people don't even know what the Fed is How can people lose confidence in system they don't even understand. People who have most of the money are the ones pulling out of banks, and mostly it's because the FDIC won't cover all of their assets, so they are spreading it across banks....that's just one thing, but it is one cause for the runs.

[edit on 10-10-2008 by yellowcard]

Who did they think they were kidding anyways?
The FED/IRS has been a criminal enterprise ever since they created it in 1913.
I guess when you come home after the holidays and find out you've been robbed, you don't go running out in search of your stuff...why should this be any different.
It's like the crooks just moved in and started charging you rent instead...

reply to post by yellowcard


Oh yes . . . so this is all just a big ado about nothing

The whole world is spazzing over a few people moving money around.


Please . . .

People are watching the news and internet. All they see are photos and
video of traders sitting in front of computer screens holding their heads,
or staring wide-eyed in disbelief at some stock-ticker message board.

Much of the fear and loss of faith is being drummed up by the media.
Very little in the way of layoffs and other dire events related to this
major economic correction are occuring in this country. It's sad
how cynical and gullible the public is becoming..but given the fear
being spewed by mass media on everything from finances to tainted
hamburgers, it's not surprising.

I think that this is another innoculation for what is about to happen. The MSM usaully does a lot of fear mongering but they rarely tell the truth. I am actually glad the the word is being put out there that things are not fine and dandy. If you listen to Bush, he says that everything will be fine and that we need to put our faith in the system. HA! The system is what got us into this mess in the first place!

It seems that everything is run on credit nowadays instead of assets. You can't even run a business without credit. Credit freezes up due to the sheer amount of debt. Pump more worthless money into the economy to encourage MORE debt. Sounds like a great plan to me.