Financial Fears


It's been five years since the economy began its downward spiral; but some people aren't so quick to forget.

Since the collapse of U.S. investment bank Lehman Brothers families across the world live in fear of a relapse. So they're hoarding money selling assets all in an effort to pad their nest egg. Problem is; the more people protect themselves the more they endanger the global economy.

An Associated Press analysis of households in the ten biggest economies show that families have pulled hundreds of billions of dollars out of stocks, stopped borrowing and are investing money into savings and bonds. Things with interest rates too low to keep up with inflation.

Analysts say it doesn't take much to destroy consumer confidence; but it does take a lot to build it back. They say the attitude toward risk is permanently reset. Today the amount of credit card debt is at levels not seen since 2002. And the rate at which it fell hasn't happened since the end of World War II. Now if only the country could manage its personal piggy bank so well.