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Jan 5, 2009

Good Economy, Bad Economy

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The worst financial crisis in more than a half century is going to get even worse, putting further pressure on U.S. home prices and driving the unemployment rate above 11 percent, according to two prominent academic economists.

Carmen Reinhart, from the University of Maryland, and Kenneth Rogoff, of Harvard, suggested housing might not bottom until 2010, which bodes poorly for struggling banks that still hold trillions in mortgages.

“Financial crisis are protracted affairs,” Reinhart and Rogoff wrote in a paper presented at this weekends annual meeting of the American Economic Association, in San Francisco.

via Economists see jobless surge, deeper housing hole | U.S. | Reuters .

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