'Perfect Storm' Batters US Economy

A perfect storm of economic maladies has the US economy reeling on the edge of recession and officials struggling to limit the damage it causes, reports the New York Times. But many economists say there isn’t much the government or policy makers can do besides batten down the hatches and, in the words of a Charles Schwab analyst, “let the system wash it out.”

Although banks are clearing the worst of the subprime mortgage crisis, other industries are feeling the repercussions. Inflation and unemployment are on the rise as the dollar sinks, driving up energy prices—but also driving out overly leveraged investors. That actually sounds good to analysts willing to ride out the storm. "It's not just a silver lining," one economist says of the shakeout. "It's a platinum lining." (More economy stories.)