What's Ahead For The U.S. Economy?
Wharton finance professor Richard Marston worries that recession is a real threat. The credit tightening that has grown out of the subprime mortgage situation has been worse than many experts had expected earlier in the year, and it is still hard to gauge. If it becomes harder for businesses to borrow, the economy could seriously weaken, he says. "Whether we hit a recession depends on one of two things happening. Either the banks get into enough trouble that they engineer a credit crunch on regular bank lending, which hits the medium and small firms in this country, or the consumer starts to blink. We are weak enough now that either thing could push us into recession."
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