Saturday, December 19, 2009

Feldstein Says U.S. Economy Still Mired in Recession

My favorite mainstream economist nails it again.

The U.S. economy remains mired in a recession, prospects for next year are weak and home prices may resume declines, Harvard University economics professor Martin Feldstein said.

“The recession isn’t over,” Feldstein said today in an interview on Bloomberg Radio in New York.

Feldstein is a former president of the National Bureau of Economic Research and remains a member of the group’s Business Cycle Dating Committee.

I was also impressed with him last year, when trying to catch him off guard at an event in San Francisco, I asked him if he knew at what rate M2 money supply was growing at. He knew. This is very rare. In the middle of the crisis in 2008, when Bernanke slowed money supply growth to a standstill, Treasury Secretary Paulson's top economic advisor did not even know this was occurring.

Feldstein definitely watches the numbers and doesn't fall for propaganda.

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