Ben Bernanke doesn’t really care if you call it a recession or, in his words, “a very serious slowdown in the economy.” Whatever it is, the chairman of the Federal Reserve thinks a new stimulus package is needed to get those terrified Americans dipping into their mattresses and buying things again.
“We are in a very serious slowdown in the economy which has very serious consequences for the public,” he said.
“Whether it’s called a recession or not is of no consequence.”
[...] Any government spending would need to kick in quickly to encourage people and businesses to boost spending and help the economy during the period in which economic activity would be otherwise weak, he said.
The Federal Reserve chairman also said the package should include provisions that would aid the jammed credit markets, which has been a major factor in the economy’s slowdown.