Morgan Stanley's Roach: US Recession Will Dwarf Dotcom Crash

It is a sign of the times that they are now close to the consensus. This year's event has been dominated by discussions of the stock market slump on both sides of the Atlantic, the Federal Reserve's emergency interest rate cut and the SocGen fraud disaster. But underlying everything has been the silent truth that the US is facing a very possible recession, and is fast having to adapt to a far less enjoyable economic climate. "We have, as relatively sophisticated, well-developed economies, gotten hooked on credit as never before," said Roach, speaking about the UK and US. "If we had been running our economies the old-fashioned way, for example, where saving and consumption were funded by income, maybe we wouldn't be in this mess we are in now. http://www.telegraph.co.uk/money/main.jhtml;jsessionid=KMKID3DNESTTBQFIQMGSFFWAVCBQWIV0?xml=/money/2008/01/28/ccusecon128.xml

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