Sen. Warren Warns of Economic Recession

Sen. Warren Warns Of Economic Recession

Elizabeth Warren is warning of a recession. Maybe we should listen. Slate: “In 2003, Elizabeth Warren predicted that subprime mortgage lending would lead to a big economic crash. In 2008, it came true. Now Warren is warning that another crippling economic crisis — this time fueled by rising household and corporate debt — could be on the horizon, unless we (she) take(s) swift action. ‘Warning lights are flashing,’ the Massachusetts senator wrote in a Medium post Monday. ‘Whether it’s this year or next year, the odds of another economic downturn are high—and growing.’ Warren also points out that household debt has surpassed previous records set before the last recession in large part because of stagnant wages and increasing student loan, credit card, and auto loan debt. Corporate debt—particularly lending to companies with already high levels of debt—is snowballing, too. (Former Federal Reserve chair Janet Yellen has raised similar concerns.) ‘I see a precarious economy that is built on debt—both household debt and corporate debt—and that is vulnerable to shocks,’ Warren wrote. ‘And I see a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.'”