How Will the Financial Crisis Hit Main Street?

The ongoing credit market storm that has overwhelmed the current financial system in the United States has begun to negatively impact Main Street, corporate America, state and local municipalities and has spread dramatically overseas. Along with the demise of the traditional investment banking model, there has been a seizing up of global short-term interbank credit markets as containment has given way to contagion. Expect massive deleveraging to obstruct credit channels, rescue efforts to slowly calm markets, homeowners and consumers to take a hit, higher borrowing costs for capital investment, and more tightening ahead.