Economists Fear It's Too Late to Save Economy

Measures now won't have impact for months
By Jim O'Neill,  Newser User
Posted Jan 13, 2008 7:41 AM CST
A foreclosure sign tops a sale sign outside an existing home on the market in northwest Denver in this Aug. 29, 2007 file photo. The Bush administration has hammered out an agreement with industry to...   (Associated Press)
camera-icon View 3 more images

(Newser) – It may already be too late to quickly stop the economic tailspin triggered by the implosion of the housing market and booming energy prices, several experts believe, reports the New York Times. Perhaps the best that can be done is to make the crunch hurt a little less. “The question is not whether we will have a recession, but how deep and prolonged it will be,” said one analyst.

Any action taken now won't likely have an impact until much later in 2008, economists warn. The Bush administration and Democrats are considering nearly $100 billion in tax rebates, unemployment assistance and home heating aid, and the Fed is looking at cutting rates at least half a percent.