Feldstein says US recession “isn’t over”

Feldstein.JPGHarvard’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.”

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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