US heading towards recession, says HSBC

Times Online – HSBC’s chief economists, Stephen King and Ian Morris, were sending around a “recession risk” warning to clients this afternoon. The Hong Kong bank cut its 2007 growth forecast for the US economy to just 1.9 per cent, or 1.3 per cent for next year’s fourth quarter alone.

“Following the 2000-01 stock market crash, the US economy staged a miraculous recovery. That miracle is now ending. A cocktail of higher energy prices, tighter monetary policy, an end to tax cuts and, more recently, a housing market that appears to be in free-fall threatens to poison the upswing,” they said
Times Online