Big Choke

Banks are getting bailouts in order lend more. But it's not happening.

The mortgage market is contracting. Auto sales are falling so rapidly because only buyers with the best credit can get loans.

Next in line is the $2 trillion credit card industry. Look for a sharp drop there as banks are forced to deal with increasing delinquencies.

Of course, consumer spending will take another big hit, and another other round of stimulus checks will do little to lessen the blow.

As long as the banks continue to deleverage and cut off credit, the economy is in trouble.