At least we seem to be more than half way through this crisis, and the positive side to all this is that the housing market is near the bottom, probably somewhere between now and early spring. This means that those looking to pick up a bargain and take advantage of these conditions will begin to do so soon, which has its own knock-on effect.
Last night I watched an excellent programme on BBC News channel which was an hour debate on the credit crunch with notable banking luminaries and good old Robert Peston, the BBC business editor. I think he should have his own facebook fan club.
Obviously one of the points spoken about in detail was Henry Paulsons’ bail out plan. Is he just bailing out his mates? Will this plan, which will together with other amounts spent mean over $2 trillion has been spent on rescuing the US financial system, finally mark an end to US capitalism and pass the dominant baton to China once and for all?
The problem has been that in the past the US has been too quick to bail out financial markets before. So the institutions get a bit blasé and take more risk knowing that they will be rescued if things get tough.
Well, yet again it seems that they may be, but this time we need provisions in place that guard against this happening again.
But there are political games being played with this legislation, and as has been quoted by Justin Webb on the BBC, “President Bush has lost authority to an extent that must be unprecedented in modern times”.
Rightly or wrongly the $700bn bail out being hammered out in the US will determine how long this rough weather lasts. If it does not pass through the fall out could well be a nuclear winter that lasts another 12 months.
If it does eventually go through in some form or other we can only hope it is enough to finally end the storm. At least until the next time.