Martin Feldstein, the president of the National Bureau of Economic Research, as well as a Harvard Economics professor isn’t bullish when it comes to the economy. The former economic advisor to President Ronald Reagan spoke to the attendees at the Futures Industry Association meeting in Florida today where he shared his outlook.

Feldstein says our current downturn could be the worst since WW II. The next two years will be very difficult, in his opinion.

He also believes that even federal fund interest rates of 2% will not revive economic activity due to lack of liquidity in the credit markets–here in the U.S. and globally. He said without credit creation there’s no economic growth.

Additionally, he believes there are powerful forces that will drive inflation higher, even though inflation expectations are currently contained.

The use of barter is added economic survival insurance…
Insurance

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This entry was posted on Friday, March 14th, 2008 at 11:43 am and is filed under From the Desk of Bob Meyer. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.