Aug. 7 - U.S. President Obama returns to the White House facing twin debt crises in Europe and the U.S., which featured a U.S. credit rating downgrade. Deborah Lutterbeck reports.
U.S. President Barack Obama returns to the White House, Sunday as a recent rash of bad economic news has deepened a sour public mood. After spending the weekend at the Presidential retreat at Camp David, Obama is facing twin debt crises in Europe and the United States, which featured a U.S. credit rating downgrade, for the first time in American history. With unemployment remaining stubbornly high and growth modest there are challenges ahead amid increasing talk that the U.S. could slide into a double dip recession. Former Federal Reserve Chairman Alan Greenspan, speaking on NBC's Meet the Press, downplayed the risk of a double-dip recession. SOUNDBITE: Former Federal Reserve Chairman Alan Greenspan, saying (English): "With all of this bickering going on, the economy is slowing down. You can see it in all the data. I don't see a double-dip, but I do see it slowing down." The former Fed chief said much depends on Europe, which buys a quarter of U.S. exports. European leaders are now struggling to contain a sovereign debt crisis, which has spread to Italy, the euro zone's third-largest economy The European Central Bank is considering buying Italian government bonds to keep markets at bay until the currency bloc's own rescue fund can take over. Deborah Lutterbeck, Reuters