Will the U.S. and Europe Rise Again -- or Sink Together?

These days, virtually everyone agrees that economies are a mess in the United States, Europe and much of the rest of the world.
On October 25, the Conference Board reported that sentiment among U.S. consumers had sunk to lows not seen since the height of the recession. A “super-committee” of 12 members of Congress is at loggerheads, with only weeks to find ways to slash U.S. budget deficits before Draconian cuts kick in automatically. And in Europe, governments are wrestling over how to deal with the debt crisis in Greece and other countries.
Are things as bad as they seem?
Unfortunately, they are, say three Wharton faculty members who study economics and financial markets. At a recent presentation before Wharton board members, Franklin Allen, Richard Marston and Kent Smetters warned that a true recovery could be some time off, and that conditions could get worse before they get better. (For more about the challenges facing the eurozone, check out this video interview with Allen and Wharton management professor Mauro Guillen.)

>>>More