Christina Romer

Economic Policies Under Review As Advisers Leave Obama Administration!

It seems likely that major economic policy changes are coming soon, partially as a result of the upcoming midterm elections, and partially over the inability so far for the Obama Administration to deal with the constant unemployment numbers, now 9.6 percent, and possibly going up to over 10 percent! 🙁

Yesterday, economic experts said the Great Recession is over, and that it ended in June 2009, after 18 months, starting in December 2007! This is the longest recession since World War II, with the 1973-75 and 1982-83 recessions officially lasting 16 months!

But it is very hard to believe that the recession is over, with so little job growth and the horrible housing market, so it is time to change people and policy!

Nevada, Michigan and California have between 12-14 percent unemployment, and Florida is close to 12 percent, and this is what is killing the Obama popularity in the public opinion polls!

So Larry Summers is leaving, joining earlier departures of Peter Orszag and Christina Romer. This means only Treasury Secretary Timothy Geithner remains from the original economic team, and one would not be surprised if he left sooner, rather than later!

It is clear that unless the economy starts to turn around in 2011, no matter whether the Democrats retain or lose Congressional control, Barack Obama will be in deep trouble for re-election in 2012! The forecast is not promising! 🙁