The Federal Reserve's $800 billion program to loosen up the flow of credit to consumers could end up having little or no effect on the economy because consumers are increasingly afraid to borrow money that they might not be able to pay back, and banks do not want to make loans that will not be repaid. Economist Michael Darda described the Fed's effort to revive consumer spending through the purchase of consumer debt from banks as "spitting in the wind."

Full Story:

Related Summaries