Serious words from Robert Rubin:
"Former U.S. Treasury Secretary Robert Rubin said that the world economy still faces "extended difficulties” from the fallout of the U.S. subprime mortgage crisis and rising energy and food costs.
"It’s possible that it could get better during the course of this year, but it’s far more likely that we will have extended difficulties for quite some time yet if you consider what is happening with housing prices, the price of oil and so much else,” Rubin said today in an interview in Rome.
Record oil and food prices are fueling inflation and choking growth at a time when the fallout from the U.S. subprime mortgage market meltdown has already taken a toll on the global expansion. The Organization for Economic on June 4 cuts the growth forecast for its 30 members to 1.8 percent for this year, the slowest since 2002."
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Rubin Says Economy Facing `Extended Difficulties’
Alessandra Migliaccio and Flavia Rotondi
Bloomberg, July 1 2008