Economic Turmoil

With financial markets reeling,soaring budget deficits swollen from costs of wars in Afghanistan and Iraq and increased spending on domestic security,there is little taxpayer money for bailing out failing financial institutions.Inflation is rising,fueled by rising food and gas prices.Mortgage lenders Fannie Mae and Freddie Mac,which hold 50% of all US mortgages,have lost 80% of their stock value over the last 12 mos.The risk of runs on banks is rising as depositors lose confidence.Federal regulators seized IndyMac Bank on July 11,after hundreds of depositors lined up to withdraw their money.The bank reopened on July 13 under federal control.Meanwhile,layoffs continue to increase.