Bernanke: We Won’t Bounce Back in 2009
While he was able to give the banking business a little lift on Tuesday, Federal Reserve Chairman Ben Bernanke also delivered the sobering news that the economy as a whole isn’t likely to make big gains in terms of recovery before 2010 or later.
WAIT, BEFORE YOU GO…
The New York Times:
Mr. Bernanke told the Senate Banking Committee that the Federal Reserve was doing everything it could to unlock credit markets and ease the financial crisis. But a full recovery, he said, is months, if not years away.
“If actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability — and only if that is the case, in my view — there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery,” Mr. Bernanke said.
Major what-ifs included the ramifications of an increasingly global financial crisis, as well as a negative feedback loop as lower confidence translates to worsening market conditions, and vice versa.
Investors seemed to interpret some of Mr. Bernanke’s remarks as hopeful. In particular, stock prices picked up when Mr. Bernanke played down fears that the government would “nationalize” American financial institutions.
If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.
Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.