Investor Pessimism Peaks Amid Credit Crunch and Recession Fears

Investor pessimism has surged to the highest level this year amid fears over a looming recession and the threat of a credit crunch for US consumers and businesses, according to Bank of America's global fund manager survey. About two-thirds of investors are bracing for a weaker economy over the next year, the highest since December. The survey identified the bank credit crunch and a global recession as the top risk to markets. The clock is running out for lawmakers to lift the debt limit, and although an overwhelming share of investors expect a debt ceiling resolution ahead of the so-called X-date, that is a marked drop from April.