Skip navigation
Watchlist Sponsored By :

Current DateTime: 08:20:18 10 Jul 2009
LinksList Documentid: 24355697
  • Highest Grossing Movies

      What are the highest grossing movies of all time, adjusted for inflation? Click ahead to find out!

  • Most Expensive Places To Live

      Each year, Mercer Consulting assembles its ranking of the most expensive places to live. Mercer compiles information from 143 cities worldwide.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.


Current DateTime: 08:20:18 10 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

Defaults Bigger Threat for U.S. Economy than Terrorism: Poll
By: Reuters | 27 Aug 2007 | 05:12 AM ET
Text Size

The risk of massive defaults on subprime mortgages and heavy debts now poses a bigger threat to U.S. economic prosperity than terrorism, a panel of U.S. business economists said on Monday.

"The combined threat of subprime loan defaults and excessive indebtedness has supplanted terrorism and the Middle East as the biggest short-term threat to the U.S. economy," the National Association for Business Economics said.

The conclusion was based on a survey of 258 NABE members conducted between July 24 and Aug. 14 and updates one done in March.

Only 20% of members said terrorism was now their top concern, compared with 35% in March.

"Meanwhile, 18% of those surveyed pointed to the effects of the subprime debacle as their biggest concern, and the related issue of 'excessive household and/or corporate debt' was cited by another 14%," NABE said.

For all the concern about current conditions in mortgage markets, NABE members remained upbeat about the longer-term outlook for the housing sector. (Home sales fall for 5th straight month.)

"The five-year housing outlook remains largely positive," the survey said. While 42% thought housing prices will be flat over five years, another 41% predicted they will rise compared with only 16% who foresaw a price drop.

A growing number of NABE members now see the U.S. housing boom of the early 2000s, when prices were shooting higher, as a credit-induced bubble. Comparing findings now with two years ago, NABE said 29% of members feel the boom was a "serious national bubble," up from 14% two years ago.

While about 60% of NABE members approved regulators' moves to tighten mortgage lending rules, more than 90% considered they were "too late" in doing so.

More economic news ...

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon


Current DateTime: 06:45:40 10 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:04 10 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 07:29:15 10 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:49 10 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters