Ugly Scenario of Dominos Falling Envisioned

It remains to be seen if the United States is statistically in a recession, but in the minds of most everyone, the nation clearly is. With rising unemployment, an evident slowdown in consumer spending, dire concern in the banking industry, and seemingly futile attempts by the Federal Reserve to address the increasing economic reversal, the parts are all in place for at least a recession in the nation with global repercussions. Some, like the professor cited in this article, envision a set of circumstances negatively developing quickly one after another occuring in a largely sequential flow, like dominos falling and tipping additional dominos over. This downward spiral is likely to result in a "catastrophic financial and economic outcome" for the United States. If the current recession continues into the Summer of 2009, we very well may see the professor's forecast come to fruition. Forecasts of this magnitude are difficult to make, particularly over such an extended period of time, because there are so many variables that can factor into what happens, many which are unimaginable and sometimes even seemingly impossible.



http://news.yahoo.com/s/ft/20080219/bs_ft/fto021920081334359078;_ylt=AozoX8V3CwKFRV6c_RfR1f0E1vAI


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