MikeLigalig.com

The US economy will slow sharply in the second half of the year and the risk of it going into recession cannot be ruled out, the OECD has warned.

The 30-nation group of top economies said the global financial fallout from the current US sub-prime mortgage crisis would continue for some time.

But it said US consumers remained resilient while Europe was unlikely to be as badly affected as the US.

Uncertainty over the size of sub-prime losses has caused stock market turmoil.

Financial risk

The OECD said the contraction in the US housing market and the wider problems in the financial markets it has triggered would have a negative impact on the US economy.

It is now forecasting economic growth to fall to 2% in the third quarter and 1.5% in the fourth quarter from the 4% recorded between April and June.

"We are looking at a slowdown in the US economy which is quite significant," said the OECD's chief economist Jean-Philippe Cotis.

source: news.bbc.co.uk

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Now is the time for realtors to buy out homes--cuz people are selling homes for cheap. Homes that were once worth 1.5-2 million USD are now worth 750k or even 1 mil USD.

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