StickWithANose

To counter the possible mis-perception that the pessimistic outlook of my recent posts is a reflection of my consumption of a narrow band of information that only re-affirms my own pre-conceived notions [something of which I am critical] I offer this intriguing Bloomberg piece on speculation that 2010 could see significant economic growth. Time will tell…

The U.S. economy next year will turn in its best performance since 2004 as spending perks up and companies increase investment and hiring, says Dean Maki, the most-accurate forecaster in a Bloomberg News survey.

The world’s largest economy will expand 3.5 percent in 2010, according to Maki, the chief U.S. economist at Barclays Capital Inc. in New York. The rebound in stocks and rising incomes will prompt Americans to do what they do best –consume, said Maki, a former economist at the Federal Reserve. Faced with dwindling inventories and growing demand, companies will soon become confident the expansion will be sustained, he said.

Household spending “will pick up steam as we move into the second half of 2010,” said Maki, 44, who topped all 60 forecasters in the Bloomberg News ranking of gross domestic product projections for the first three quarters of 2009. “The overall picture for 2010 will be an economy growing rapidly enough to bring down the unemployment rate” to an average of 9.6 percent.

Mind you that an unemployment rate of 9.6 percent is still very high.