Finally some reality is setting it among our government officials. We are now past "the economy is strong" and "we have reached a bottom" type statements. Now we get cheery statements like the following from the Fed Open Market Committee (FOMC):
"Information received since the Committee met in December suggests that the economy has weakened further. Industrial production, housing starts, and employment have continued to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly. Conditions in some financial markets have improved, in part reflecting government efforts to provide liquidity and strengthen financial institutions; nevertheless, credit conditions for households and firms remain extremely tight. The Committee anticipates that a gradual recovery in economic activity will begin later this year, but the downside risks to that outlook are significant."
Downside risks are most decidely remaining significant. I could hardly have said it better myself.
http://www.federalreserve.gov/newsevents/press/monetary/20090128a.htm
Disclosures: None
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