Dire warnings issued about collapse of US economy

Dire warnings issued about collapse of US economyEconomists are issuing dire warnings that the US economy is on the brink of collapse and the voice was spearheaded by economist Nouriel Roubini who said “The US has run out of bullets,” to an economic forum in Italy earlier this month.

Other economists have also proselytized nightmarish visions about future of the world’s number one economy.

From Timesofindia.indiatimes.com:

According to a poll by the StrategyOne Institute published Friday, some 65 percent of Americans believe there will be a new recession.

And the view that America is on a decline seems rather well ingrained in many people’s minds supported by 65 percent of people questioned in a Wall Street Journal/ NBC poll published last week.

“It is true: Today’s economic problems are structural, not cyclical,” argued New York Times editorial writer David Brooks.

He said the United Sates is losing its world dominance much in the same way the British Empire began to crumble more than a century ago.

“We are in the middle of yet another jobless recovery. Wages have been lagging for decades. Our labor market woes are deep and intractable,” Brooks said.

Nobel Economics Prize winner Paul Krugman also voiced concern about the fate of the fragile economic recovery if voters return the Republicans to political power.

The IMF warned that the foreclosure backlog in US property markets could lead to “disproportionate losses” for small and medium-sized banks and loss of market confidence in the recovery process.

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