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The deputy governor of the Bank of England has warned the global financial slowdown could "drag on for some considerable time". Charles Bean, who only took up the post this year, said that every time the markets began to look steadier, "another grenade" exploded.He said the downturn was at least as bad as in the 1970s, but predicted growth would pick up and inflation fall next year, provided oil prices and credit markets stabilised. He described the crisis as a "transitory period" that would pass.The deputy governor, speaking to the BBC from the annual conference of the world's top central bankers in the US, said delegates attending last year's event believed the crisis would have been over by the end of last year. He said the mood at the conference was one of "considerable caution for the next year". "It looks like it will drag on for some considerable time further," Bean said. "We've got our fingers crossed that things will improve. But there is the recognition that there is still a long way to go yet."Wall Street shares swung lower at the opening yesterday as oil prices turned higher and traders braced for reports that are expected to highlight US economic woes.The market was awaiting data on US existing home sales expected to underscore the deep troubles of the housing market and increase the pressure on mortgage giants Fannie Mae and Freddie Mac.Briefing.com's Patrick O'HareAa said the mood was somber."At the moment, oil prices are up a bit and worries about the credit market and earnings prospects for the financial sector continue to fester," he said.
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