David Kirkpatrick

August 26, 2008

Credit crunch continues

Not the greatest news from this AccountantsWorld article:

So have inflation worries finally replaced credit conditions atop the list of investors’ biggest concerns? Is the credit crunch finally waning? Not a chance.

An August survey of economists conducted by the National Association for Business Economics did show an uptick in worries about energy prices and inflation, to 16% and 15%, respectively. However, 46% of economists said the credit crunch and the state of the financial system was their top worry.

“The more persistent threat is going to be the credit crunch,” says First American Fundschief economist Keith Hembre. As the economy weakens and the unemployment rate rises, inflation pressures should ease, he says.

But the credit crisis is like a bad song stuck on repeat: Each time it plays, the tune grows more annoying.