I see a recurring theme that everyone is living beyond their means. People are over-extended on their credit cards and mortgages. The government runs in deficit and the national debt is huge. The U.S. auto manufacturers has too much overhead and is losing money like crazy. The investment banks have over leveraged their investments in bad mortgages. And mortgage lenders were giving loans with insufficient collateral and security for the credit.
And now we have no credit flow. Is that the symptom or the antibody?