USA Today: No ordinary crisis
USA Today has this report today: Economic pain – ‘payback’ for debt-fueled growth?
A snippet:
If it wasn’t clear before Tuesday, it is now: This is no ordinary economic crisis, and it won’t be over anytime soon. In fact, problems are multiplying. A year ago, the financial virus seemed confined to subprime mortgages, loans given to those with less-than-perfect credit. Now, much of the banking system appears rickety, and the U.S. economy has slowed to a crawl. But thanks to robust demand from still-growing countries such as China, the prices of commodities from oil to food have soared — hitting Americans from the gas pump to the grocery checkout.
“There’s no hope of an early recovery at this point,” says economist Kenneth Rogoff of Harvard University. “The best-case scenario is we have a long but mild recession — and that’s the best-case scenario.”
Posted: July 16th, 2008 under In the News.
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