US credit crisis looming, investors warned

A credit crisis is looming that threatens to wreak financial havoc, even as international markets continue to overlook a crucial mismatch in the US economy, warns Matt Murphy of US fund house Eaton Vance. The institutional portfolio manager argues there is significant risk of US consumer price deflation and recession amid a widespread misunderstanding of both Federal Reserve action and the strength of America’s recovery. Murphy was covering risks and opportunities he sees while …