25-Aug-2010 10:26 AM

US faces real possibility of economic stagnation: Standard & Poor's

Standard & Poor’s Chief Economist, David Wyss, stated the US has a “realistic possibility” of falling into a Japanese-style economic slump. “A rising population in the US creates more need for capital, more need for housing, which makes deflation a little less likely, but I’m not sure if that makes it impossible,” Mr Wyss said (Bloomberg, 24-Aug-2010). "A slow recovery is a vulnerable recovery. It’s fragile. Any kind of outside shock could easily still turn this into another recession.”