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More and more people worldwide are saying that phrase to passersby but is there really anything the average person can do about the state of the world economy

The world banking system showed signs of pulling back from the brink of disaster with a tangible easing of stress across credit markets as the US government unveiled a historic rescue plan for its banks - including $250bn for bank recapitalisation and a sovereign guarantee for new bank debt – the most sweeping government intervention in the US financial sector since the Great Depression

The world’s stock markets reacted positively to the gathering campaign to bail out the world’s troubled banks, with governments on both sides of the Atlantic announcing measures to restore liquidity and inject fresh capital into their ailing banking systems. It was the best day for US stock markets since the rebound following the great crash of 1929

Parents still making investments for their children’s future, survey finds

ben88_uk posted a photo:

What’s that?

New breakfast cereal, credit crunch

Looks economically disappointing

Yeah, it’s giving me a bit of a recession

edEx posted a photo:

A bailout, in economics and finance, is a fresh injection of liquidity given to a bankrupt or nearly bankrupt entity, such as a corporation or a bank, in order for it to meet its short-term obligations. Often bailouts are by governments, or by consortia of investors who demand control over the entity as the price for injecting funds.

Government bailouts of corporations are usually reserved for cases when a corporation is considered "too big to fail" — justified by the argument that failure of certain corporations would cause unacceptable short-term economic repercussions throughout the economy.

The Emergency Economic Stabilization Act of 2008 (Pub.L. 110-343, Div. A, enacted October 3, 2008), commonly referred to as a bailout of the U.S. financial system, is a law authorizing the United States Secretary of the Treasury to spend up to US$700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation’s banks. The Act was proposed by U.S. President George W. Bush and Treasury Secretary Henry Paulson during the global financial crisis of September/October 2008.

The maximum cost of a $700 billion bailout would be $2,295 estimated cost per American (based on an estimate of 305 million Americans), or $4,635 per working American (based on an estimate of 151 million in the work force). It should be noted however, that it makes little sense to merely divide the number 700 billion by the number of Americans or even by the number of American families, as the debt would not be paid in this fashion even if it were all entirely used and squandered. America pays the interest on its debt, and many Americans do not make a significant contribution to this payment or to taxes in general.

More regulation is not the answer to the financial market’s problems and there should be greater emphasis on the responsibilities of bank boards and management, a top banking supervisor said on Monday.