Harvard’s Prof Martin Feldstein is one of the very few economists who has correctly forecast the length of the current downturn.
Today, he questions whether the US recession is really over, and suggests that “2010 is going to be a very weak year“. He believes that we are entering a more frugal economy, and notes that this new mood “as you come out of a recession is going to be a drag.”
Feldstein also believes that the housing slump will “continue to push down house prices“. He adds that in his view, the Obama administration’s efforts to revive housing markets “was just not well enough designed (and has) ended up failing.”