US faces severe recession Position #6911

The US faces a recesssion in which the production of consumer durables and the construction of new houses nosedives.
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IssuePotential consequences of the financial crisis?
PositionUS faces severe recession
ComponentEarly baby boomers will be hit particularly hard
SupportiveArgumentBank bankruptcy bailouts worsen national fiscal position
SupportiveArgumentCommercial real estate loan market will seize up
SupportiveArgumentDriven deeper by vicious circle of losses fueling further losses
SupportiveArgumentMajor investment projects are scaled back
SupportiveArgumentMajor nonfinancial companies go bankrupt as well
SupportiveArgumentRecession leads to defaults on other unsecured debt
SupportiveArgumentSharp decline in consumer spending
SupportiveArgumentUnemployment above 10 percent
Citations


Author: Jeffrey D. Sachs, Scientific American
Cited by: David Price 10:14 PM Saturday 4 October 2008 GMT
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Entered by:- David Price
Entry date (GMT): 10/4/2008 10:12:00 PM
Last edit date (GMT): 10/4/2008 10:34:00 PM
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