The Crash: In The Shadows of the Twin Towers

How America's budget and trade deficits grew to daunting heights

"Reagan's economic policy is an off-the-wall approach. We're running an incredible experiment with these ((budget and trade)) deficits."

-- The late economist Otto Eckstein, February 1982

"It is a scandal. I don't know what they're on, down in Washington. It's wacko time."

-- Chrysler Chairman Lee Iacocca, February 1984

The warnings did not match the violence and volume of last week's stock- market statement, but they have been sounding for years. Innumerable economists, business leaders and politicians from both the Democratic and Republican parties have issued alarms about the growth of America's budget and trade deficits. And yet the problems grew...

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