From a story in today’s San Francisco Chronicle regarding the Fed’s bailout of Bear Stearns and what it signified in terms of the economic downturn spreading throughout US financial markets:
Bay Area consumers are feeling the pain. Pleasant Hill resident Caleb Mitchell, 25, had his Washington Mutual home equity line cut in half last month to $55,000 from $110,000. He had already drawn $54,400, leaving him just $600 in additional borrowing power. ”The security blanket I had for myself is now gone,” he said.Mitchell, who works as a real estate agent, used the credit line to help cover payments on investment property he owns. Now he’s cutting back on travel and other spending, and looking for other sources of financing.
So, lets see. The SIX-FIGURE credit line, some douche used to float his INVESTMENT PROPERTIES got cut to a meager $55,000, meaning he had to face the unbearable hardship of “cutting back on TRAVEL.” No one wonder most of the world is waiting for us to crash and burn. Excuse me while I subscribe to Adbusters.