US and Global Economies Slipping in Unison

Reckless real-estate lending and a credit crisis in the US have led its consumers to purchase fewer foods in the global marketplace, which in turn slows foreign investment within US borders, reports Peter Goodman for the New York Times. “Overseas demand for American goods and services was supposed to continue compensating for waning demand in the States,” Goodman writes, reporting on the expectations of economic analysts. “Now, high energy prices, financial systems crippled by fear, and the decline of trading partners have combined to choke growth in many major economies.” A global downturn will take its toll on US companies that reported more foreign than domestic earnings in recent years. Some analysts and regulators project that an economic downturn could change consumer behavior for the better – forcing consumers to better manage debt, conserve energy, and keep energy and food prices low. – YaleGlobal