Global Economy Looks Grim
The global economy is going through a period of uncertainty and doubt. The risks are growing and becoming much worse than they were at the beginning of the year the head of the International Monetary Fund said Monday. Spain’s Rodrigo de Rato said recent turbulence in credit markets, the worst in a decade, is a warning that the continually expanding global economy of recent years cannot be taken for granted. “We still do not know the full extent of the decline in the house market and the subprime problems of the U.S. economy,” he said, referring to risky mortgages made to borrowers in the U.S. with spotty credit or low income.