According to the UK Telegraph, The House of Reps have just delivered a blow to the US economy that will reverberate all over the world.
The Economics Editor of The Telegraph Edmund Conway contends that the Western world will lose jobs, wealth and future prosperity as the result of the bailout rejection:
“In one fell swoop, the House of Representatives has applied a sledgehammer to the American economy. The staggering plunge in the value of publicly quoted stocks in the US last night – a $1.2 trillion fall – shows more clearly than anything else just how much it had been holding out for a financial bail-out.
Even so, the longer you stare at a screen of the Dow Jones or FTSE 100, the more abstract it seems. So this is what it means:
It means millions more Americans, and hundreds of thousands more Britons, will lose their jobs; it means the recession will be deeper and more protracted than previously feared; it means borrowing costs will increase on both sides of the Atlantic. Companies will cut back on investment. Pension funds will be depleted.
The Western world, in short, will become significantly less wealthy.”
Read the full story and watch the video here.