Experts See Deficit Growing by $9 Trillion

Tuesday, February 3, 2009 4:04 PM

By: Michael Kling

The federal deficit will grow by another $8 trillion or $9 trillion. Unemployment will reach the double digits, and home prices won’t bottom out before 2010, predict two leading economists in The Wall Street Journal.

They base their predictions on past financial crisis in other countries: Spain in 1977, Norway in 1987, Finland in 1991, Sweden in 1991, and Japan in 1992.

“When one compares the U.S. crisis to serious financial crises in developed countries, or even to banking crises in major emerging-market economies, the parallels are nothing short of stunning,â€