Credit Crisis Seen as Economic Threat

Bismarck Tribune (ND) (03/03/08); Crutsinger, Martin
According to a survey of 259 economists by the National Association for Business Economics (NABE), 34 percent believe the subprime mortgage crisis is the biggest threat to the economy through 2010, up from 18 percent in August. The poll reveals that 10 percent view inflation as the biggest economic problem, while 18 percent agree that high-debt loans among households and businesses is the greatest concern. With regard to the Federal Reserve, 48 percent of respondents said the central bank's policies were "about right," down from 72 percent in August. Rates are being lowered too much by the central bank, according to 34 percent of respondents, while 13 percent of those polled believe the Fed needs to more quickly cut rates. Furthermore, nearly 50 percent of the members of a separate NABE forecasting panel expect the nation to be in a recession by the end of the year.