The formation of the U.S. economy a lot worse than that in the United States, and move towards a hard landing.

U.S. consumers, who represents 70 demand and consumption us14, $%. 4 trillion economy, are in trouble and cutting expenses, reduction in the level of credit thanks.

In fact, the credit cuts deeper than ever after the latest data released by ideology.

The International Monetary Fund said today that the U.S. seems to be entered into a recession, he said.

The Foundation said in its latest World Economic Outlook, the United States intends to expand a. A 6% this year, 10 naked. 1%, in 2009.

This is an increase of 0. The 3% down to 0. 7%, respectively, compared with forecasts only 3 months ago, the International Monetary Fund in April forecast world economic outlook presented, saying that improving the U.S. economy.

This year's improvement is defined as 2. 8% in the second quarter, increasing economic growth.

This estimate is prior to the latest figures, but who have a history of consumer debt U.S. consumers cut, or reduce the credit, the lifeblood of the economy.

September sales figures, during the night showed that some of the major retailers with these declines in sales of the most slow growth, such as department stores and more expensive products.

Wal-Mart to 2. 4, in same-store sales% increase, but lower than expected loss of the price chain, Costco's done well, but the target of 3% comparable store sales decline.

JC Penny Corporation, a large department store chains reported by the masses 12. 4% in same-store sales decline in September, far below expectations.

However, it is not surprising, the U.S. Federal Reserve Board's previous report.

Tuesday night the Federal Reserve on consumer credit figures show the number of records the biggest drop in history.

At the same time, the main industry, aluminum, suffered a third-quarter profit fell 52%, and has joined the elimination of the stock repurchase powerful General Electric to save money.

U.S. National Automobile Dealers warned that the 700 will go bankrupt this year, and 2009, more responsible, if the credit freeze will not soon ease. Car sales fell 27% in September, how to lower the freezing of credit work, increase in the next quarter.

And to promote a dramatic shift by the Fed, his "understanding of lender of last resort", which limits the amount had reached 10 to replace a temporary freeze. 6 trillion in commercial paper market, the daily life of U.S. companies.

At the same time, Federal Reserve Chairman Ben Bernanke raised hopes of lower interest rates, but said the U.S. economy is heading for difficulties.

The Fed said it would establish a new funding mechanism to buy banks and 3 months, non-financial enterprises commercial paper debt.

This may be one of their most important decisions, because if this important short-term debt can not be transferred to the U.S. company (or more employers), due to expire, the U.S. economy has been cut off to stop.

The measure is an urgent need, the figures show that 28% of market share, is due this week and next week, 12%.

U.S. Federal Reserve Board last Friday's data showed last Wednesday, the market has made $ US215 million in the past three weeks, almost all new loans overnight weeks.

If the 28% to 40% of large sums of money, you can not re-negotiations, but rattled the U.S. economy is that in the end of October at the latest, so the Fed had to act.

If there is no U.S. Federal Reserve shifted to the nature of a bank, while the U.S. economy is creaking a complete halt in the next few weeks, throw the work and the company's bankruptcy domino chain, based on hundreds of thousands of people of various sectors.

In the commercial paper market freeze is because of this, Alcoa and General Electric have liked to reduce stock repurchase, why Bank of America reduced by 50% of the dividend, and attempts to raise one billion U.S. dollars of new capital.

Their support for the Countrywide Financial Services and Merrill Lynch and the increase in the burden of the acquisition will mean that their financial situation, but it is like all other banks has been an overall reduction in loans. ,

But it is clear that consumers, the U.S. engine of the economy has been deprived of the credit in this latest stage, when the credit crisis to the outbreak of the freezing of bank and other lenders. But nothing we can do, the Federal Reserve to immediately relieve the pressure on consumers: Each week, tens of thousands of them lost their jobs, their homes, and they pay cut, reduce the time and denial of credit, the speed may not be thought of, until the issued by the Federal Reserve in August, with the previous bankruptcy wave of escalation of the crisis in the United States rescue loans data from Lehman Brothers.

U.S. Federal Reserve Board reported that consumer credit fell by US7. 9 billion in August the biggest decline since statistics began to be collected in 1943 to two U.S. dollars. 58 trillion.

Bloomberg said that, economists predict that U.S. dollar price of copper in August consumer credit increased 100 million U.S. dollars, so the Fed's report is totally unexpected market.

Total consumer credit decreased rate of 4. August 3% in January 1998 the highest level since.

Cycle of debt, such as credit card US612 million U.S. dollars in August of debt reduction and non-renewable, including a car loan to reduce $ US7. 3 billion U.S. dollars.

This fall a month ago, 27% of U.S. auto sales fell last month, consumer credit, so it is likely to fall sharply in September.

The Fed's decision, news and consumer credit (in the Fed a "major economic indicators') can more easily understand one from the U.S. Federal Reserve Chairman Ben Bernanke, in his speech tonight, the contents of a sharp contraction in the report paints a bleak U.S. economy.

He knew that the initiative to try to stop the deterioration in the commercial paper market, a substantial decline in consumer credit, so no wonder he said:

"Economic activities have been signs of slowing, even in the financial markets, the recent escalation of tensions.

As has been the case for some time, the housing market is still in the real economy and financial markets, the main source of weakness. However, the slowdown in economic activity has spread outside of the real estate industry.

"Private employment continued to contract, and the decline in employment, coupled with the previous food and energy prices, growth has damaged the family purchasing power. That real income of the downturn, tighter credit and household's wealth, on the decline, now more clearly to show consumer spending.

"In fact, since May, real consumer spending has dropped significantly. Meanwhile, in the business sector, worsening sales prospects and uncertainty began to weigh the increased awareness of more investment spending.

He said: "The financial turmoil intensified, and the operation of credit markets deteriorate further, it seems likely to increase restrictions on future economic activity."

"Overall, economic activity is likely to be suffered for the rest of this year and next.'s Largest financial crisis of our most recent period of weak economic performance may be extended to further enhance economic growth and the risk of the experience.

"In order to support economic growth and reduce downside risks, continued efforts to stabilize the financial markets is essential. The U.S. Federal Reserve will continue to use the tools at its disposal to improve market functioning and liquidity."

In the meantime, the National Automobile Dealers Association, said the credit crunch and economic problems could cause 700 auto dealers in the United States to go this year.

In an interview with Automotive News Association in Detroit, Annette Lu, Sykora said that swift action would need to facilitate the compression and restore consumer confidence and help the industry.

It is estimated that 94% of U.S. car buyers in the procurement of funds, Sykora said Ms., but even such high scores and good credit record of solid can not obtain financing.

Dealers with good credit also encountered problems, their inventory to be financed.

This is the story of the same housing loans, but also in the line of credit and revolving credit agreement to terminate or reject the credit card.

According to Automobile Dealers Association, there are about 20000 U.S. auto dealers. About 430 dealers last year, closed 295 closed in 2006.

700 dealers estimate does not include new dealers out of business, will enter the market.

According to data released by the Federal Reserve's credit, the lender cut its car loans (and other credit in August) and car sales fell 11% in the month. In September 27% in reflecting the credit freeze intensified, but also helps explain why auto sales fell 27%, less than 1 million a month, since the first time since 1993.

Some buyers will not promise, because they are worried about their jobs or can not obtain the correct tools, more fuel efficient model search.

Whatever the reason, means that consumers save money. September retail sales figure was about 10 days may be tragic reading of consumption in late October as consumers figure.

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Tags: America, Chairman Ben Bernanke, credit, department store chains, Economy, Hard, Heading, Landing, national automobile dealers, U.S., U.S. Federal, United States