Recession Looms Large for American Economy

Excerpt: Former Clinton Treasury Secretary Larry Summers, a strong proponent of free trade and globalization, is warning the U.S. could be heading into recession due to the ongoing sub-prime mortgage crisis. "It would be far too premature to judge this crisis over," Summers told the London Telegraph for today's edition. "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."

Traders are bracing for another week of uncertainty after the near breakdown of America's $2,200 billion market for commercial paper.

Investors are said to be waiting to learn whether or not the Federal Reserve would succeed in stabilizing the market, the latest domino to fall in the spreading contagion from sub-prime debt.

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