Well, I guess the recession is over, since Bernanke is on live TV, announcing it

I feel so comforted now.

None other than helicopter Ben is talking about the recession in the past tense.

http://www.boom2bust.com/2008/09/23...financial-crisis-worse-than-great-depression/


Housing Bubble

Testimony given at a Congressional Joint Economic Committee hearing in October 2005 (as reported by Nell Henderson of the Washington Post):

Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve.

U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke, currently chairman of the president’s Council of Economic Advisers, in testimony to Congress’s Joint Economic Committee. But these increases, he said, “largely reflect strong economic fundamentals,” such as strong growth in jobs, incomes and the number of new households…

Bernanke’s testimony suggests that he does not share such concerns, and that he believes the economy could weather a housing slowdown.

“House prices are unlikely to continue rising at current rates,” said Bernanke, who served on the Fed board from 2002 until June. However, he added, “a moderate cooling in the housing market, should one occur, would not be inconsistent with the economy continuing to grow at or near its potential next year.”

 

Lets say the economy starts to grow again, jobs are plentiful and housing has bottomed, are we going to experience an even bigger economic boom bigger than the dot com boom and real estate boom combined, I mean what is really going to change to initiate future growth in our economy. The way they speak of a bottoming process in only a single year baffles me, a "V" shaped recovery most are yelling to be the case. I just cannot see a "V" shaped recovery, especially when they are propping up the entire system with trillions of dollars. Time will tell, 2 things worrying me going forward are insane inflation and a collapsing DOLLAR. Those are going to be something to look for going forward.

 

We're still losing jobs, wages are flat to weakening, and housing hasn't bottomed.

In fact, a new wave of foreclosures and layoffs is currently underway.

The government is desperately trying to stimulate consumer spending, but is failing, and government spending (stim package) was so unpopular, Obama can't go back to Congress to ask for more money, hence the crappy idea of a public-private linkage with hedge funds, vulture capital and other forms of private capital, which will NEVER WORK SINCE THE GOVERNMENT IS PROPPING THE BANKS UP GIVING THESE BANKS A DISINCENTIVE TO LOWER THE PRICING OF THE ASSETS THEY ARE HOLDING WHICH PUTS EVERYONE AT A STALEMATE.

Government policy is schizoid and terrible. Words can't sufficiently communicate how terrible it really is.

 

He is working with the cards that were dealt him. I will get flamed for this, but I actually think Bernanke is a true American unlike some of the other swine in DC. The meltdown in September was averted by his actions. Time will tell if I am wrong.

 

....sell the news :eek:

 

Recent data has actually shown increases in consumer spending.