Monday, March 3, 2008

US economists worried about mortgage losses, consumer debt

US economists are becoming increasingly concerned about America's ailing mortgage market and and the debt burden being carried by tens of millions of households, according to a survey released Monday.

The February poll of 259 members of the National Association for Business Economics (NABE) found its membership had also become more worried that US interest rates have been cut too dramatically.

"NABE members are increasingly concerned over the short-term risks associated with subprime mortgages and other forms of indebtness, while they continue to cast a wary eye on inflation," said NABE president Ellen Hughes-Cromwick who is also the Ford Motor Company's top economist.

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