Tags: feldstein | no | recovery

Feldstein: Stock Rally No Sign Of Recovery

By    |   Wednesday, 15 Apr 2009 10:59 AM

Martin Feldstein, chief executive of the National Bureau of Economic Research, isn't seeing any green shoots of recovery, as Fed Chairman Ben Bernanke calls them.

"I see no firm basis for predicting when the economy will begin a sustained increase," Feldstein told the Gulf Daily News.

"I believe it won't be in 2009. Sometime in 2010 is possible, but is still no more than a hope."

Feldstein fears that the $787 billion fiscal stimulus package agreed by the Obama administration is too small to remedy the current faults of the U.S. economy.

Feldstein says that the current global crisis is the worst he’s ever seen, and cautions policymakers to be wary of treating any slight improvement in economic performance over the next year, calling it a "false dawn."

He also feels that regulators must shoulder their portion of the blame for the financial mess after granting sub-standard institutions what he describes as "the Triple-A stamp of approval."

A new report from the Manufacturers Alliance suggests that a weak economic rebound may be in the cards late this year.

"While the rare financial underpinnings of the current global crisis make it more difficult than ever to assess the impact of policy, it is difficult to believe that rock-bottom prices for fuel and commodities, the lowest interest rates in a generation, and a growing effort to repair bank balance sheets won't eventually be sufficient to restore at least weak positive activity," report author economist Cliff Waldman wrote.

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Martin Feldstein, chief executive of the National Bureau of Economic Research, isn't seeing any green shoots of recovery, as Fed Chairman Ben Bernanke calls them."I see no firm basis for predicting when the economy will begin a sustained increase," Feldstein told the Gulf...
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2009-59-15
Wednesday, 15 Apr 2009 10:59 AM
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