Every morning traders wake up and hope that the financial services disaster has ended and that housing has reach a nadir.
Better go back to bed. According to a study put together by four of the nation’s leading economists the worst is still ahead.
According to Reuters:
“The depth of the crisis hasn’t been hit yet if a new study by several prominent economists is correct concluding that unless financial markets can quickly recapitalize, banks are likely to cut back their lending to consumers and businesses by nearly $1 trillion. That will slash economic growth by more than a percentage point over the next 12 months, said the study by David Greenlaw of Morgan Stanley, Jan Hatzius of Goldman Sachs, Anil Kashyap of the University of Chicago, and Hyun Song Shin of Princeton University.”
Douglas A. McIntyre