Scotiabank Says Measures are not sufficient to ward off a Deterioration in U.S. Economy

According to Scotiabank's Global Outlook released Monday, sharp monetary policy easing, a generous fiscal stimulus package and massive liquidity injections are not sufficient to ward off a deterioration in U.S. economic conditions as the subprime crisis continues to take its toll on the economy and government spending soars to unprecedented levels.

"Without another injection of fiscal and/or monetary stimulus, however, recent economic resilience will likely give way to a broad-based weakening in U.S. conditions by year-end," said Scotiabank chief economist Warren Jestin. "The temporary palliative to consumer spending provided by Washington's flood of tax rebate cheques will be followed by a relapse in sales once this fiscal stimulus recedes."