Alarming revelations by Larry Summers, director of the US president's National Economic Council in the Financial Times.

Summers says the recession has a long way to go and the worst is still ahead. Summers says: "I don't think the worst is over ... It's very likely that more jobs will be lost. It would not be surprising if GDP has not yet reached its low. What does appear to be true is that the sense of panic in the markets and freefall in the economy has subsided and one does not have the sense of a situation as out of control as a few months ago."

Summers still says the right measures are being taken and that, in time, will lift confidence and lower mortgage rates. He told the FT that he wants the US to emerge out of this 'more export-oriented' and 'less consumption-oriented'; 'more environmentally oriented' and 'less energy-production-oriented'; 'more bio- and software- and civil-engineering-oriented and less financial-engineering-oriented'; and, finally, 'more middle-class-oriented' and 'less oriented to income growth that is disproportionate towards a very small share of the population'.

But of course, much of that will depend on factors outside the control of the White House. Like, for example, the state of the global economy, not to mention other factors like wars in Iraq and Afghanistan, not to mention the nuclear ambitions of North Korea and Iran.

But if nothing else, Summers' words are a reminder about the dangers of getting too optimistic in this climate.