• Posted on Saturday, October 4, 2008
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Bailout is just a beginning

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The turmoil in the financial markets has trickled down to Sean Wilson, who is trying to raise money for a new brewery in Durham. Wilson has $150,000 so far but recently was told by two potential investors: "I can't do it right now because I don't have the funds. My portfolio is down."

For months now, the credit crunch that has staggered the nation's financial system has created problems for businesses that need loans or investors. This week, as Congress worked to create the financial rescue plan that passed Friday, lending requirements got even tighter, with devastating results for some companies.

On Tuesday, Spectrum Yarns closed two North Carolina plants, in Marion and Kings Mountain, and laid off 200 workers, saying it couldn't obtain the credit it needed to stay open.

In less extreme cases, lack of access is hurting some companies' ability to pay workers and bills and is forcing others to delay expansion or put off hiring.

Read the complete story at newsobserver.com

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ECONOMY IN TURMOIL

economy in turmoil

Read McClatchy coverage of the economic pain Americans around the country are feeling, from Florida to California to Alaska.

ECONOMY QUESTIONS & ANSWERS

 hall & pugh

McClatchy correspondents Kevin G. Hall (left) and Tony Pugh are available to answer your questions about the economic meltdown at home and abroad, and what's in store for ordinary Americans.

Q&A: THE HOUSING CRISIS

Mark Zandi, the chief economist for Moody's Economy.com, is took questions from McClatchy readers about the nation's deep housing crisis. His book, "Financial Shock," offers a 360-degree look at what caused the crisis, what mistakes were made and who made them. It offers a way forward to prevent future crises.

Q&A: TERMINAL CHAOS

U.S. air travel these days is about as fun as a trip to the dentist. Departure delays are rampant, bags often miss the flight you've caught and rising jet fuel prices have major airlines charging to check a bag. In his new book "Terminal Chaos," George Donohue, a professor and former high-level Federal Aviation Administration official, explains why our system of air travel is broken and what can be done to fix it. Read the responses.

Q&A: THE THREE TRILLION DOLLAR WAR

For two weeks, Nobel Prize-winning economist Joseph Stiglitz and Harvard professor Linda Bilmes, authors of "The Three Trillion Dollar War," fielded questions about the cost of the Iraq war and its impact on the U.S. economy. They're not taking new questions, but they're still posting answers to ones they've already received. Read their responses.