Wednesday, January 14, 2009

Two Charlies on the economy

Charles Plosser, president of the Federal Reserve Bank of Philadelphia expects the U.S. economy to slowly start recovering in the second half of 2009 and inflation to remain below 2 percent over the next year.

In a Wednesday speech at the University of Delaware, Plosser indicated that he didn't expect the unemployment rate to drop soon, but that it wouldn't rise to the double digit levels experienced in the early 1980s.

You can read the rest of the article on his speech here.

In Maine, economist Charles Colgan, at his annual "Breakfast with Charlie" at the University of Southern Maine, offered a far less rosy picture.

According to Colgan, Maine's economic woes will be with us well into 2010, without any significant thaw until the third quarter of that year. For more on Colgan's chilly forecast, visit the Muskie School's website.

Wouldn't it be nice if we could prove the experts wrong, and find a way out of this nosedive sooner?

1 comment:

Anonymous said...

There certainly was a lot of buzz on Charlie Colgan's address. That morning, my primary benefits broker was in for the mid year review. His associate had just come from the presentation.

That afternoon, I was in another meeting with an MAMe working group, same thing happened. One of the participants had been there.

Since then Maine Public Radio broadcast it on Friday afternoon, at 1 PM. (I was in all day training session and didn't get to listen in.)

I believe that all federal actions taken to date are sound and will slowly have their intended affect. The stock markets need to turn off the programmed trading, aka untouched by human minds, and get the human soul back in touch with and in charge of trading transactions. Automated trading decisions are a core part of the downward spiral.

Stayed tuned and buckle up.