FORECASTS: The Gloomiest Outlook Yet

Economists have long disputed the idea that they practice "the dismal science," but when TIME'S Board of Economists met last week to assess the state of the U.S. economy "dismal" was about the only word to describe their forecasts. In perhaps their gloomiest session ever, the economists predicted a continuation throughout the year of all the nation's present economic woes: torrid inflation, skyscraping interest rates, sluggish growth, stubborn unemployment, a deepening trade deficit. Worse, they foresaw a new and frightening threat: the possibility of a financial crisis from which some savings...