Federal Reserve Bank of Minneapolis President Gary Stern predicts we’ll pull out of the recession this year.
“The recession is likely to persist through mid-year and the initial stage of the recovery seems likely to be subdued,” Stern said Thursday.
“With the passage of time — as we get into the middle of 2010 and beyond — I would expect to see a resumption of healthy growth,” the central banker said.
Um. Gee. That’s really swell. But here’s what Stern said in March 2007 about mounting subprime debt possibly tanking the U.S. economy:
“I don’t see at the moment why that should happen … It seems unlikely to become big enough to have an impact on a $13 trillion economy.”
Oh, and here’s what he said about the economy in December 2001, noting its strenght after 9/11:
“Housing activity is a measure we might consider in thinking about the mindset of the consumer … and the housing activity numbers continue to suggest to me that consumer confidence remains reasonably healthy.”
Very healthy indeed – with a stack of offers from subprime lenders in every load of mail.
If he didn’t see it coming, how can he see it going?
(PHOTO: Gary Stern, from the Fed’s website.)