Alan Blinder, who was once Alan Greenspan’s chief rival on the board of the Federal Reserve, thinks oil prices are the number one threat facing the U.S. economy right now.And while he acknowledges the threat of the European sovereign debt crisis, Japan, and U.S. debt he doesn’t think they are such a big deal comparatively, according to his editorial in the Wall Street Journal.
- Japan: The economic impact of the disaster will be short and Japan will recover quickly
- Europe: While some countries may face default, Europe’s leadership usually works out a deal when it really counts
- U.S. budget deficit: He expects us to muddle through, but if the debt ceiling is hit it could prove disastrous for the U.S. economy
- Oil: Worry number one according to Blinder, but only if prices rise further, to around $150 a barrel
Blinder still thinks the U.S. economy has a 60% chance of beating all of these obstacles.
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