Home Loan Crisis Will Have LImited Impact : IMF Economist

Source : TODAY, Friday, September 14, 2007

The home loan crisis will cause just a modest slowdown of the United States economy and have a limited impact on the rest of the world, the International Monetary Fund’s chief economist said on Wednesday.

“It’s an important wake-up call for all of us,” said Simon Johnson.

But he reiterated that the economic fundamentals remained good and that the effects of the sub-prime crisis on the real economy remained limited.