by Calculated Risk on 9/04/2008 01:47:00 PM

"I think it likely that our movement through the muck and the flotsam and jetsam of the credit and housing debacle will be sluggish, and it may take some time into 2009 for us to get the economy back up to a snappier cruising speed."
Dallas Fed President Richard W. Fisher

From Dallas Fed President Richard W. Fisher: Economic Challenges

The housing market has yet to find its bottom; credit markets remain tempestuous; creditors are tightening their standards; consumers and businesses are battening down the hatches and reefing in their sails. The prices of Chinese and other emerging country labor and inputs we have come to depend on have been rising; business margins are being squeezed; consumers are suffering from declining real incomes; savers and investors are confronted with negative real rates of return. These are hardly fortuitous circumstances.

My view is Fisher has been behind the curve on the economic slowdown, although he is clearly more pessimistic now.