Foray into banking won’t lead to a quick recovery


Wednesday, October 15, 2008 | No comments posted.

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WASHINGTON (AP) — With any luck, the government’s quarter-trillion dollar cash infusion in banks will get them lending again, but the radical move won’t quickly turn around the tottering economy.

The pain will almost certainly drag on as vanishing jobs, shrinking paychecks and nest eggs, and slumping home values continue to force millions of Americans to pull back.

Sales at the nation’s retailers are expected to drop in September even as they get a break from record-high energy prices. Uncertainty about the economy — and their own financial fortunes — probably will force consumers and businesses alike to hunker down further, spelling more problems for the already troubled economy.

Anxiety about the economy is the No. 1 concern of voters. With the presidential election just weeks away, Democrat Barack Obama and Republican rival John McCain are working furiously to convince people that each is the best choice to steer the economy through these perilous times.

In addition to September retail sales numbers, other economic data out Wednesday is expected to show that even though the recent retreat in energy prices calmed inflation at the wholesale level bit, costs are still high and are squeezing businesses.
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