We continue to ignore all the warnings!
SAN FRANCISCO (MarketWatch) -- An economic recovery is "underway" in the United States, but the country's ability to manage its growing public debt has become a major challenge, the International Monetary Fund said Friday.
The report by the IMF's executive board said that "a massive policy response" has enabled the U.S. economy to emerge from a serious financial crisis.But "setting public debt on a sustainable path is a key macroeconomic challenge," the body said.
The IMF also noted that "economic recovery has been slow by historical standards -- consistent with past experience in the aftermath of housing and financial crises -- and the outlook remains uncertain."
Meanwhile, a separate IMF report on the health of U.S. banks also said that "despite the restoration of stability, pockets of vulnerability linger and difficult challenges remain in implementing financial-sector reforms."
The report said the U.S. economy and financial system "remain vulnerable to an unexpected weakening of demand, credit quality in the commercial real-estate sector, and housing prices."
