This morning I attended a breakfast with Dr. David E. Altig, Senior Vice President and Director of Research at the Federal Reserve Bank of Atlanta. This is one of many meetings the Fed is calling a “Case for Confidence” where various members of the Fed are traveling around the country in an effort to explain the role of the Fed and to instill confidence in business owners.

Dr. Altig was candid and transparent about the economy and the role of the Fed in the current economic climate.

Here are some of his comments:

• This recession will be the worst since World War II
• Home prices will continue to fall with no real end in sight
• We are in the midst of an economic change that will result in a new financial and banking system
• This recession will pass but no one knows how long it will last – it has already lasted 14 months which is the 3^rd longest recession since WW II
• There is hope but there is no guarantee that all the Fed intervention and stimulus will revive the economy
• If the government doesn’t get it right we could be in for the longest and worse recession in history

My take on all of this is that we should proceed with deliberation and carefully thought out strategies and plans for how to conduct our businesses.