What's Ahead in 2009

If 2008 was the year in which the Federal Reserve, the US Treasury and other policymakers began to enact massive and innovative policy measures to combat the ongoing credit crisis and economic recession, the first quarter of 2009 saw a widespread acceleration of those efforts. The Fed’s announcement that it would purchase upwards of $1 trillion worth of mortgage-backed and Treasury securities in an effort to boost economic growth will radically expand its balance sheet from less than $2 trillion to over $4 trillion by the end of the year. At the same time, the Treasury Department announced the launch of its Public-Private Investment Programme, which is designed to provide a means by which banks can remove some of the toxic assets from their balance sheets. This plan is one of the most important initiatives recently launched by the government and one that should, over time, help stabilise the banking system.

Read the Full Article for more on the global economy and what's ahead in 2009