Summers: Economy Needs More Fiscal Stimulus

Monday, July 7, 2008 2:37 PM

The credit crisis and economic downturn could get worse without more fiscal stimulus, warns former Treasury Secretary Lawrence Summers.

In a recent opinion piece in the Financial Times, Summers, now a professor of economics at Harvard, aurges regulators to take preemptive measures including passage of the housing aid bill, moves to stem commodity price increases, and preparations for failure of another large financial institution.

“It is quite possible that we are now at the most dangerous moment since the American financial crisis began last August,â€