An Economist's View

Jan Hatzius,Chief Economist of Goldman Sachs,says 2009 is still going to be a tough year.We do have a stabilization in the second half,but unemployment will rise into the first half of 2010.We've got 10% positive growth in the second half of 2009.I am absolutely in favor of an activist approach,both from the Federal Reserve and a very aggressive stimulus from the new administration.My biggest concern for 2009 is that the feedback effect,the harm that can be done by the reining in of spending,will be more dramatic than people are anticipating,Mr.Hatzius cautioned.