Bernanke Warns Economy Worsening

[SummerSailing81]

When the people in charge start saying things are bad with the economy, you know we're in serious trouble! Is it time for us to :panic? I, for one, will be putting that rebate we're supposed to get under the mattress because at this point it's looking to me like the bank is no longer a safe place.

http://news.aol.com/business/story/_a/bernanke-warns-economy-worsening/n20080214131309990018

[cbressler1976]

this stuff is so depressing lately, that I can't read it anymore....

[SummerSailing81]

I know what you mean. I know I need to get my eyes off the economy and putting my hope in the people running the government and instead put my faith in the only one Who can help us - God! He's taken care of me for 47 years now, so He has a proven track record. No reason to think He won't continue. I don't know how this is all going to play out, but I do know that He will never leave me, nor forsake me. Jesus promised it and I can take it to the bank - no pun intended. :nod

[SumSam]

Bernanke and Paulson don't believe the country will fall into a recession. Their forecasts still call for growth, albeit slow growth, they said. However, the pair did say Thursday that the administration and the Fed are expected to downgrade their economic forecasts for this year.

So, slow growth /= recession? How recent are their forecasts?

[Nova]

Bernanke is down playing the situation. I think the financial situation is worse than he is stating. Or rather about to become worse.

How it plays out for us "little people" doesn't look good. It will either stabilize & we will see the ongoing slow, but steady, loss of buying power of the dollar. Or it will tank big time with bank closures, etc. My hunch is that some form of baleout for banks & bond insurers will happen. And the big banks-like BofA, Wells Frago, WaMu, etc will all survive.

I edited our my opinions because I was concerned they were too negative.

[ANewCreature]

One of the big plusses is that my parents and I each own our homes; totally paid off. My part of Ohio is pretty economically depresed (is there a part that isn't), but it seems like God's leading me to stay put for the time being.

My last student loan is at a fixed rate 5%, I don't know that a few hundred will put a dent in it, I had enough trouble paying almost $300 a month I had to go into hardship forebearance for a total of like a couple years, till I refinanced back when you could - smartest move I ever made, as my law practice was going to wind down even further. Yes, I pay out longer, but...hard to say. Maybe a few hundred extra applied to that will help. But, I'm also thinking excess food or something.

I just hope we get enough tithes from it - I didn't step out in faith enough to tithe on my Social Security check till maybe 4-5 years ago, so if I have trouble with that, I know others will be tempted not to - but I think it's improtant. (Yes, I made so little as a lawyer I continued to draw Social Security all through my practice - you can earn a lot more being legally blind. And there are some people who say I should pray for healing. :pound Being legally blind is what's *saved* me. :thankyou2) (Couldn't find the "God is Good" smilie - so thta'll have to do. Hey, no reason you can't give God flowers. :)) So, if I had trouble stepping out in faith on that, I can see where others might also have trouble.

I will get a few hundred, since I pay taxes, being self-employed, though, so I'll be able to use it on something. I just don't know if moving to an area that's more economically vibrant will help - sounds like a lot of areas won't be soon.

[Nova]

God bless you, ANewCreature, for overcoming so much. I'm moved by your diligence & good attitude.

I'm seriously considering editing my above post & just leaving in the parts that are happening now. Where I see things going is based on the fallout from what has already happened.

[SummerSailing81]

Bernanke is down playing the situation. I think the financial situation is worse than he is stating. Or rather about to become worse.

How it plays out for us "little people" doesn't look good. It will either stabilize & we will see the ongoing slow, but steady, loss of buying power of the dollar. Or it will tank big time with bank closures, etc. My hunch is that some form of baleout for banks & bond insurers will happen. And the big banks-like BofA, Wells Frago, WaMu, etc will all survive.

I edited our my opinions because I was concerned they were too negative.

There's no doubt, Nova, in my mind that the government will bail out the banks. But, it's going to be at the expense of those of us who are the working and middle classes. They'll raise taxes and of course the price of food, gas, housing, insurance, etc. will all go up. It'll probably mean that those who are on the edge and living from paycheck to paycheck right now won't be able to make ends meet. And those who are able to pay their bills and save a little will slide down to living paycheck to paycheck. The rich will probably be affected very little, especially since the majority of polticians are themselves in this category. Don't mean to be such a negative Nellie, but the government always protects the haves.

[Nova]

I don't think the government is trying to protect anyone's wealth-rich or poor. Instead the measures protect power of the politicians to overspend & maintain the solvency of the government at the expense of the buying power of the dollar.

[RobertB]

I don't think the government is trying to protect anyone's wealth-rich or poor.
Actually, back when the FED bailed out LTCM, it was an example of the government (quasi-gov) bailing out/protecting the rich, the Hedge Fund investors. So, there are precedents.