US Treasury Secretary Henry Paulson today announced that he could see the end of the US Credit Crunch being in the very near future. This has raised a lot of skepticism from economists and pundists around the world who ask the question, should someone with such an obtuse view of the US economy really be in charge of it?
Currently the US economy, along with the UK and several other EU countries is under a period of normalization to bring living costs back into line with wages.
Henery Paulson seems blissfully unaware of this fact as he tried to stall the depression recently with a government rebate to his country. If he thinks a hundred or so dollars is going to stop the increasng number of bankruptcies he really is in trouble.
He mentions the recovery of several lending agencies, however he does not point out that the collapse of these was due to ‘loss of faith’ that saw the Northern Rock Bank Nationalised in the UK in 2007. The credit agencies will still suffer as people in the countries become poorer and find it increasingly difficult to maintain a lifestyle they hope for without becoming heavily in debt.
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