for the banking industry is causing so many unintended side effects it must be making their heads spin.
Yes, banks have gotten some interest-rate relief and don’t have to pay through the nose for short-term funds like they did a few days ago.
But to fund the bailout, the government will have to borrow massive sums, and the mere expectation of that huge avalanche of borrowing is already driving long-term interest rates higher:
The U.S. Treasury is now being forced to pay the highest rates since July …
U.S. cities and states all across the U.S. are suddenly getting slammed with surging borrowing costs, and …
The housing market, where this whole crisis began, is taking the biggest hit of all: The sharpest one-week surge in mortgage rates since April 1987!
These higher interest rates will torpedo an already-sinking real estate market, send the economy into an even steeper tailspin, force more consumers and businesses to default on their loans and, ultimately, burn an even deeper hole in bank balance sheets. Click Here.