Everything is getting pinched

The economic doom and gloom continues. This story from Friday's New York Times basically sums up all of the major issues ailing the economy:...

The economic doom and gloom continues. This story from Friday's New York Times basically sums up all of the major issues ailing the economy: housing sales, mortgages, problems with the banks. From my perspective, there are two things that really stand out here.

First is the fact that Washington Mutual had to make two public statements in about a week. Here's the first, which talks about the bank's liquidity position; the second announces the $3.3 billion second quarter losses.

The second is the various ways in which one set of economic circumstances affects other circumstances. This interesting story was published over the weekend, talking about the far-reaching implications of lowered bonuses on Wall Street. Not only does it mean less money for the workers themselves, but fewer jobs, less taxes for the city, and less spending with retailers, particularly specialty retailers. It goes without saying that the economy has been hurting everyone, but the ways in which the hurt is being felt continue to surprise.

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