Globe and Mail: US economic meltdown: U.S. plan may save markets, but not economy - by Heather Scoffield

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U.S. plan may save markets, but not economy - by Heather Scoffield

The U.S. plan to bail out collapsing financial institutions may help stabilize markets but won't necessarily stave off the economic effects of the crisis, some economists warn. ,p>“The rescue of the banking system is a necessary ingredient for global economic prosperity, but it is insufficient to ensure it on its own,” writes chief economist Carl Weinberg. “Fixing the banks does not fix the economy. Even with the banking problems fixed, the United States economy remains in a growth recession, teetering on the brink of real contraction.”