WORLD> America
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WORLD> America
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Economists say shaky US economy may last for a while
(Agencies)
Updated: 2008-10-06 23:20 The survey was taken before President Bush speedily signed an unprecedented $700 billion financial bailout into law on Friday shortly after Congress completed action. The plan would allow the government to buy bad assets from banks and other institutions to shore up the financial industry. The rationale behind this is that by taking these toxic debts off financial companies' balances sheets, they'll be in a better position to raise capital and more inclined to boost lending. The credit clog, which has intensified in recent weeks, has roiled Wall Street and poses a grave danger to the economy, warned Federal Reserve Chairman Ben Bernanke, who backed the bailout measure. Still, even with the bailout, many analysts predict more pain ahead. Employers will keep cutting jobs and the unemployment rate - now at 6.1 percent - will climb higher. In September alone, the economy lost 159,000 jobs, the most in more than five years, the government reported Friday. The survey of 48 forecasters was taken Sept. 8 through the Sept. 19; some supplemental questions were taken on Oct. 1-2. |
