Banks In Trouble...

By Jerry Xiao

Former IMF chief economist Kenneth Rogoff said that the worst of the United States financial crisis is stil yet to come. Recently, many middle sized banks have been failing, but Rogoff predicts that the next one to fail will be a big one, one of the biggest banks, even possibly Fannie Mac and Fannie Mae. Rogoff was the IMF (International Monetary Fund) chief economist from 2001 to 2004. He is also a Harvard Economics Professor. Rogoff criticized the move by the U.S. Treasury when it cut interest rates from 3.25 percent to 2 percent. He is quoted saying, "Cutting interest rates is going to lead to a lot of inflation in the next few years in the United States."