![]()
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Japanese Stocks Likely to Fall Broadly on Dubai Worries
- US Dollar Falls to 14-Year Low Against the Yen
- US Companies Already Moving on Curbing Emissions
- Fannie Mae to Tighten Lending Standards: Report
- Investing in Good Karma – and Making a Profit
- Retailers Should Believe in Christmas Miracles
- Bankruptcies Jump, Hitting Highest Level in Four Years
- Steepest Black Friday Discounts, Revealed
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
MOST SHARED
- Kuoni CEO Sees Recovery in Travel Sector
- Gold Retreats from Record High as Dollar Rebounds
- Dubai Struggles to Ease Debt Fears; Investors Rattled
- Chinese Overcapacity is Worsening, EU Chamber Warns
- Fannie Mae to Tighten Lending Standards: Report
- Wal-Mart Price Pressure Hurts China Workers: Report
- China Unveils Carbon Target Ahead of Copenhagen
- Hyundai-Kia Targets Rapid China Growth in 2010
- Great Britain, No Longer That Great: Investor
The combined punch of subprime mortgage defaults and heavy debt remains the biggest risk to the health of the U.S. economy, a panel of business economists said Monday.
![]() |
AP |
"NABE members are increasingly concerned over the short-term risks associated with subprime mortgages and other forms of indebtedness, while they continue to cast a wary eye on inflation," said Ellen Hughes-Cromwick, president of the National Association for Business Economists.
The conclusion was based on a survey of 259 members conducted between Feb. 1-15 and updates a poll conducted in August.
Of the members polled for the NABE semiannual Economic Policy Survey, 52 percent said the combined threat of subprime mortgage defaults and heavy debt was their No. 1 concern, up from 32 percent in August.
Inflation was a distant third at 10 percent in March, up from 6 percent, the survey showed.
Only 9 percent of the members polled said terrorism was now their top concern, compared with 20 percent in August.
"Fewer respondents support monetary and fiscal policies being implemented to address the credit situation, with more than one-third saying current monetary policy is too stimulative," said Hughes-Cromwick.
Just 48 percent judged monetary policy to be "about right", a drop from 72 percent in August and 81 percent in March 2007.
Two-thirds of those surveyed expect short-term interest rates to decline over the next six months, with about half of those respondents expecting a cut between 25 basis points and 50 basis points, NABE said.
The Federal Reserve has aggressively cut the benchmark federal funds interest rate, bringing it down to 3 percent from 5.25 percent in mid-September to bolster the economy against the housing downturn and credit squeeze.
The most frequently cited concerns about lower interest rates are the threat of inflation and the sense that lower rates might "bail out investors who should have known better," NABE said.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
- Ever wished your cab driver would stop nattering and just get to where you're going? Well that moment is near(er).
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.












