The mortgage debacle has done away with the credit, and in this society, without credit, nobody buys anything. Companies cannot get credit to cope with their debts and those who can not charge nor can afford. Sale of new properties has dropped to the level lowest of the past 17 years and in the last 12 months its value declined 16.3%, according to Standard & Poor s. Automotive companies, for its part, reported the most meagre sales over the past two decades: only in September, plunged 30 percent. Aircraft travel half empty. Supermarkets are selling more food for the simple reason that people avoid eating out. Moody s Economy.com, the net worth of American households (total assets of the family group, less liabilities) fell 10 trillion dollars in the last four weeks, and retirement plans have lost $ 2 trillion in the past 15 months. The efforts of the Government and the Federal Reserve by breathe liquidity into the market faced increasingly intense distrust of the public, who feel that the crisis has not touched even Fund.
Us adds Diament in his writing, which gradually begin to appear heart-wrenching stories of family, friends or acquaintances who have lost everything, or are about to lose it. People appeals to their savings, their reserves and their retirement plans. According to The Wall Street Journal, the persistent fall in the price of the properties, as much as 30% in some areas has done, almost one of every six households have mortgages worth more than the property. This is equivalent to about 12 million households on the verge of execution. All of this happens when just 24 days for presidential elections, and although polls favor Barack Obama, the difference is still far from being decisive. There is a curious calm throughout the country may very well be interpreted as the stoicism that Americans tend to exhibit at critical moments, or perhaps of a relentless belief in manifest destiny of the United States.