U.S. Economy Faces Meltdown
by Ian Mosley
Just a few weeks ago, markets around the world were crashing, and a disaster seemed all but certain. The federal reserve responded by slashing the Fed Rate three-quarters of a point, and the Stock Market avoided a wholesale disaster. The underlying problems of a sub-prime mortgage disaster, millions of good-paying jobs being outsourced and a huge illegal alien population draining our government services are still there, and predictions of a coming recession or crash are rampant.
The Financial Times of London reports “So how bad might this downturn get? To answer this question we should ask a true bear. My favorite one is Nouriel Roubini of New York University’s Stern School of Business, founder of RGE monitor.Recently, Professor Roubini’s scenarios have been dire enough to make the flesh creep. But his thinking deserves to be taken seriously. He first predicted a US recession in July 2006. At that time, his view was extremely controversial. It is so no longer. Now he states that there is ‘a rising probability of a catastrophic financial and economic outcome.’ The characteristics of this scenario are, he argues: ‘A vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe.’ ” (more…)















