Many economists believed that U.S. economy will recover in the second half of 2009. Recent developments in the economy and politics changed that perception. Many economists in the latest survey by Wall Street Journal believe that a 2009 “second-half recovery” is looking much less likely.

Many economists think that U.S. would see annualized GDP growth of 4.6% decline in stead of 1.2% increase estimated earlier. Forecasts for the April-June period have seen a similar shift, from a 1.9% growth forecast to now a 1.5% decline.

“We’re in trouble,” said Brian Fabbri, chief economist at BNP Paribas. “We don’t have sufficient economic plans at present to resolve the banking system or the financial crisis, and the stimulus package seems loaded for 2010.”

In May 2008, Wall Street Journal published an article that said “The worst of the financial pain may have passed, but the economic pain could be just starting.” Both financial and economic pains still persist. In that article, Nouriel Roubini, an economist who heads RGE Monitor, predicted that a wave of defaults on industrial loans, municipal bonds and consumer credit was coming, which would trigger another wave of financial-system distress. He was right. Now, Nouriel Roubini thinks that nationalizing the banks, at least temporarily, is the best way to solve the current crisis.

Politicians and economists may take lot of time to fix this crisis. Until then, tighten your wallet to survive more prolonged pain.

Related Links: Wall Street Journal Article | Dr. Roubini in Bloomberg News (Video)

It is only the 2nd day of January in 2009 and there are already predictions coming in galore regarding the year that will be in 2009. It certainly isn’t uncommon at this time of year to get plenty of people playing the role of prognosticator, but the average individual should be careful of reading too much into these 2009 predictions.

How big is the prediction buzz already in 2009? CNBC has already started its own 2009 Predictions Special Report Page, where pretty much everyone who ever comes on their network is given the opportunity to play forecaster. Every industry reporter speculates as to what will come of that specific group in 2009, and how investors should play the stocks in the year ahead.

I thought with all the calls of a bottom in the economy or the stock market on a certain date in the coming year, today would be a good time to remember to take all these predictions with a grain of salt. Remember, many of these people who are now calling a bottom or speaking so highly of certain areas were very wrong in 2008. This stock market and this economy is one that no one who is currently analyzing the market has ever seen the likes of before, so I truly believe their predictions should weigh far less than normal on your personal finance and investing strategy.

The truth of the matter is that no one knows exactly what 2009 will bring for the stock market or the economy. As an investor and an individual in control of your hard earned finances keep in mind that uncertainty still rules in 2009 until proven otherwise. If you really need to follow some expert advice, watch what people like Warren Buffett do. Please don’t just listen to every so called financial guru or your head will be spinning and you’ll probably be losing money in the process.