If a wingnut like Feldstein can admit it, then....
U.S. faces severe recession: NBER's Feldstein
Fri Mar 14, 2008 11:00am EDT
By Ros Krasny
BOCA RATON, Florida (Reuters) - The United States is in a recession that could be "substantially more severe" than recent ones, National Bureau of Economic Research President Martin Feldstein said on Friday.
"The situation is very bad, the situation is getting worse, and the risks are that it could get very bad," Feldstein said in a speech at the Futures Industry Association meeting in Boca Raton, Florida.
"There's no doubt that this year and next year are going to be very difficult years."
Feldstein makes a point that also occurred to me:
The Fed's huge new credit facility, announced on Tuesday, "can help in a rather small way ... but the underlying risks will remain with the institutions that borrow from the Fed, and this does nothing to change their capital," Feldstein noted.
Posts
No comments:
Post a Comment