Terrorism is no more the gravest threat for US economy, subprime fallout is....

Economists call subprime fallout biggest threat

Growing number say it could harm economy most during next two years

WASHINGTON - The cascading fallout from the subprime loan crisis, barely a cloud on the horizon a year ago, is now viewed by experts as the economy’s gravest threat.

In a survey being released Monday, 34 percent of the members of the National Association for Business Economics ranked the financial market turmoil from those loan defaults as the No. 1 threat to the economy over the next two years.

That compares with 18 percent from an August survey, when the most serious threat was seen by 20 percent of the economists as terrorism and the conflicts in the Middle East.

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