Brian Fabri,Chief Economist at global bank BNP Paribas,says the U.S. economy still needs help,and that is why Federal Reserve Chairman Ben Bernanke will keep interest rates low.By Q3 2010,there could be nasty surprises in the economy.Banks still are gonna be writing off more bad debt.Commercial real estate will cause more losses for banks.State and local governments will be insolvent,probably needing more federal aid.I think we go from 3% growth to 1.5% about the middle of next year.There are significant head winds,a number of little factors.In 2010,liquidity stops growing.It could create another flight to safe dollar/Treasury move.We will return to reality from the golden handshake.We will back away from risk-taking about the middle of next year,Brian Fabri predicted.
The economic research department of BNP Paribas is a worldwide function grouping together economists based in Paris,New York,London and Tokyo.BNP Paribas has 202,300 employees in 83 countries.Its three core businesses are Retail Banking,Corporate Investment Banking and Investment Solutions.It was named 2008 Global Banker of the Year by The Banker magazine.
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