The U.S. economy is on a slippery slope

I t was only last summer when stock markets plunged nearly 10 per cent, shocked by a sudden credit crunch emanating from the implosion of the American housing bubble.
It seemed that the era of easy credit and ever-rising stocks had ended.


Now, all this appears to be just an unpleasant memory. The Dow Jones industrial average has more than erased its earlier losses, closing well above a previous record set in July. Other major indexes are well on the way to recovery. With the Fed in easing mode, what could go wrong?


Even dour old Alan Greenspan seemed on the verge of cracking a smile. The former Fed chairman said in a speech last week that the credit crisis could be nearly over, noting that the financial world's appetite for riskier assets seems to be returning.


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