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October 7, 2008 1:27:30 AM CDT

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US Economy Isn't Bouncing Back

Posted Jun 8, 08 5:11 PM CDT in Business,  Glossies,  US 

(Newser) – Forget those predictions of a US economic revival in 2008, Daniel Gross writes in Newsweek. The four horsemen of the economy—credit and housing crises, food and energy prices—are getting meaner, while booming commodities and crunching credit are curbing attempts to fight back. "As a result, the consumer-driven economy may not bounce back as rapidly as it did in the fraught months after 9/11," Gross writes.

Old-school tactics like rate cuts and tax rebates won't save us, either. Meanwhile, Mumbai, Dubai, and Beijing are making prices spike despite a crippled US, which means Americans will spend their rebates at the pump. And the real sign of a healthy economy—a strong housing market—is still down, if not out.

Source Newsweek

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A sign at the former Georgee's Restaurant in Lake Alfred, Fla. is seen Tuesday, March 25, 2008.   (Associated Press)
Newsweek explains why upbeat forecasts for a quick economic turnaround were wrong and what can pull us out of this financial crisis.   (Associated Press)
In this June 4, 2008 file photo Federal Reserve Chairman Ben Bernanke listens to other speakers before he delivered the Harvard Class Day Speech.   (Associated Press)
Trader Brian T. Joenk, center, works in the Euro options pit on the CME Group trading floor Wednesday, April 30, 2008, in Chicago.   (Associated Press)
Consumers, jolted by a credit crisis, job cuts and soaring energy costs, turned in the weakest spending performance in 17 months in February.   (Associated Press)
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US economy  • credit crisis  • Wall Street  • gas prices  • economy  • subprime crisis  • food prices  • commodities  • weakening economy  • world economy


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