Larry Summers: Recession Likely

The odds now point to a U.S. economic recession that slows global growth significantly even if necessary policy changes are implemented, former U.S. Treasury secretary Larry Summers said.

Summers, who served in the Democratic administration of former president Bill Clinton, said the U.S. authorities needed to act urgently in avert long-lasting economic damage from the global credit crunch.

Read the whole story: Reuters

Comments

[truthyguy]

07:32 AM on 11/27/2007

In a matter of 7 years a man without the education, intelligence, experience, judgment or common sense to be president has bankrupt the country and put the world in danger of all out war. What more is needed for the congress to impeach Bush and Cheney? And saying that there are only 13 months left in his term is not a reason for failing to act. In that time Bush can do even more damage. For example, yesterday he circumvented the congress' treaty making power by entering into an "Agreement of Cooperation" with Maliki (who, as everyone knows, is not even in control of his country) committing the U.S. to endlessly having troops and sending money to Iraq. It is about time that even those with enormous wealth who supported Bush/Cheney because they benefited financially realize that unless they intend to live elsewhere this course of action is also dangerous to them.

[BRUMALIA]

10:28 PM on 11/26/2007

Recession lasting until the end of the decade is a depression.Excellent point about overpaid economist Nicoleanonymous

[realitytrumpsbull]

10:16 PM on 11/26/2007

But, but, Bushererer and company printed 3
trillion for you, what, you spent it ALREADY???
Must be a pretty nice yacht....

[Troubledwawa]

07:20 PM on 11/26/2007

@ items from the article:

1) "Without stronger policy responses than have been observed to date ... there is the risk that the adverse impacts will be felt for the rest of the decade and beyond," Summers wrote in a column in the Financial Times on Monday.

2) He urged the authorities "to assure that there is a continuous flow of reasonably priced loans to creditworthy home purchasers."
-----------------------------------------------

1) Note to Lawrence - a recession that lasts the rest of the decade and beyond is called a depression. Economics 101 (duh).

2) Look carefully at the wording in that sentence - "continuous flow of reasonably priced loans to creditworthy home purchasers.".

Translation: "Land Grab".

[wagadog]

06:44 PM on 11/26/2007

Oh....right. Deregulation of Finance that must be the problem! Yeh....THAT'S the ticket!

People got themselves into debt they couldn't handle...THEY'RE to blame, right?

Pay no attention to the TRILLIONS OF DOLLARS wasted in a pointless war, maiming and destroying the minds and souls of the breadwinners who otherwise would have been PAYING those debts.

Hey, Larry Summers is an old hat at blaming the victim. Women aren't scientists because we're TOO STOOPID, right Lare? And people got into debts they couldn't pay NOT because of being sent off to a stupid war, and NOT because of outsourcing or systematic destruction of civil rights enforcement (for those same people who can't make their debts...) and certainly NOT because of systematic non-enforcement of fair labor laws. NOOOO it's because we LET "those" people borrow money in the first place. THAT's why we're going to have a recession.

Hey he lost one job for blaming the victim -- what the hell is he doing now, "economics"? Yeh, right.

[joebaggadonuts]

06:02 PM on 11/26/2007

Frankly, the coming economic collapse is the only thing that will wake up the American publick to the fleecing they have suffered at the hands of the R's in control and their sycophantic D enablers. When we destroy the underpinnings of Law and Constitution and revert to ancient tribo-religio fundamentalism as we are in the process of doing, we alienate the better natures of ourselves from our work and our situation suffers. Unregulated greed is NOT good. Wake up and smell the coffee.. . While you can still afford it. Er, that means this week.

[NicoleAnonymous]

04:23 PM on 11/26/2007

I like it when overpaid economists point out something obvious after everyone already realizes it anyway.

[bobbyvassallo]

02:01 PM on 11/26/2007

What a surprise! Fasten your seat belts for runaway inflation. Jimmy Carter times all over again. bv

[CALLENBY]

01:00 PM on 11/26/2007

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Just when you think this seesaw market is on its way to recovery, boom, it shutters your hopes. I suppose that was the impression I had earlier this morning after a news article said that the stocks were going up due to the surprisingly good show on Black Friday. Gosh was I wrong?

At any rate, I insist the best indicator is your thinning wallet as the fluctuations in are not as unpredictable as this market and you have better control of it; or do you?

www.usstockmarketcrash.info

[godlessclif]

12:38 PM on 11/26/2007

Isn't this the guy keeping poor kids and women out of Harvard?

[mrcontinental]

12:22 PM on 11/26/2007

I submit for your perusal the new Nostradamus ladies and gentlemen.

[studlyguy]

12:03 PM on 11/26/2007

no s**t Sherlock , i mean Summers , i think americans already know were in a recession now were waitng for the depression to hit,so Summers your being a optimistic of only a recession unfortunenately to much negatives high oil , food, credit crises, foreclosures on skyhigh payments , all coming into a perfect storm i think the term you could use, so saying it's only going to be a recession is comical ,maybe in your dreams Summers try a depression

[mediamarv]

11:25 AM on 11/26/2007

Looks like he could benefit from missing a few meals himself.
Why is it that the people who know so much that's good for us and the economy/country are most often overweight white guys??
That may be the problem in a nutshell.

Ask yourself: Does this guy really worry about the price of gasoline for his vehicles???

[VivaZapata]

07:44 AM on 11/26/2007

He's talking broad strokes, but he like all of the other "experts" aren't really saying much. The real culprit in all of this is the deregulation of finance. Does anyone think that money owed is going to be written off by anyone? or that the government could or should save people who acted recklessly? What message does that send to the people who have behaved responsibly and would then have to foot the bill? Time to bite the hard bullet.