U.S. economy: After some late-2000 turbulence, will the economy glide to a soft landing? (CNNfn)
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It started with such promise: A new year, a new decade, a new century, a new era of technology and productivity that would foster strong growth, low inflation and record-low unemployment. The enthusiasm 12 months ago for the new millennium and the New Economy was more than palpable.
Wow, that ended fast. By the end of June, oil prices were gushing upward, stock prices were descending downward and the new-era dot.com companies that were supposed to lead to an unprecedented era of wealth and prosperity were shuttering their doors. Consumers stopped spending and companies shelved expansion plans. Things went downhill. Fast.
Federal Reserve Chairman Alan Greenspan had tapped on the brakes of the world's largest economy, six times in all, and like it or not, they locked. At its last meeting of the year, Fed policy-makers indicated that they are concerned about the risks of recession, paving the way for an interest rate cut early in the new year.
As 2001 approaches, the big question on Main Street and Wall Street's collective mind is whether the U.S. economy, now into its 10th and record year of uninterrupted expansion, has skidded to a complete stop or simply slowed to a more sustainable pace. Is the American economic machine with Greenspan at the helm equipped with antilock brakes?...
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