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The Economy Grows! Don't Rejoice, Forecaster Charles Nenner Says Things Will Sour Again in 2010

Posted Oct 29, 2009 12:30pm EDT by Peter Gorenstein in Investing
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The recession is over! Pundits and economists have been saying it for months, and now the third-quarter GDP results back that claim.  The economy grew at a 3.5% pace in the third quarter on the back of President Obama's stimulus bill.

But, many of those same voices also acknowledge that as government assistance fades so to will the economic recovery. Market and economic forecaster Charles Nenner agrees.

Nenner, president of the Charles Nenner Research Center, says the economy will weaken again in 2010.  His charts show unemployment will continue to rise and non-farm payroll losses will peak in March of next year.

As he predicted at the end of 2007, Nenner still believes deflation remains the major economic problem "for another year."   However, that deflationary cycle will be followed, Nenner claims, by 30-years of inflation.  With that in mind, he recommends house hunters should lock in low long-term mortgage rates now because "soon interest rates will be much higher."

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