It's easy, and tempting, to make political hay out of a prediction like this, but a recession would hurt a large number of hard-working Americans and their families. It's no joking matter.
Former US Treasury Secretary Larry Summers [1991-2001] warned that the United States may be heading into recession as the biggest victim to date of the sub-prime mortgage debacle was humiliatingly sold for a token sum in Germany.
Traders are braced for another week of turmoil after the near breakdown of America's $2,200bn (£1,100bn) market for commercial paper.
"It would be far too premature to judge this crisis over," Mr Summers said. "I would say the risks of recession are now greater than they've been any time since the period in the aftermath of 9/11."
Summers' Bio: Lawrence H. Summers was sworn in as the 71st Secretary of the Treasury in July 1999 after serving as undersecretary for international affairs and deputy secretary of the Treasury. From 1991 to 1993 he served as chief economist of the World Bank, where he played a key role in designing strategies to assist developing countries. Before coming to Washington, Summers had a distinguished academic career as the Nathaniel Ropes Professor of Political Economy at Harvard University.
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