WASHINGTON, DC-At the last session held at the Urban LandInstitute’s
 annual conference last week, former FederalReserve Bank chairman
Donald Kohn ticked off the manyheadwinds still facing the US economy:
consumers aresaving and not spending; banks cannot lend at thelevels
government would like because the demand is simplynot there; the
recession proved to be deeper than manyhad initially thought; and,
finally, the worst problem ofall--the ongoing overhang of housing.

But there are a few bright spots, he also said--one of which iswaiting for fundamentals
to improve. He also noted thatthe high unemployment dragging down the recovery is
afunction of the business cycle, and not a majorstructural
component.

To be sure, Kohn said, there is a structural element to thecurrent
9.5% unemployment rate. “We are seeing lessresidential construction and less activity in the financialsector,” he said. “And these jobs won’t come back anytimesoon.”