Bernanke Warns Of Possible Recession

[run2Jesus]

http://news.yahoo.com/s/ap/20080402/ap_on_bi_ge/bernanke_congress

[run2Jesus]

Federal Reserve Chairman Ben Bernanke warned Congress on Wednesday that the economy may shrink over the first half of this year and that "a recession is possible." Yet, he didn't offer any assurances of further interest rate cuts.

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Bernanke's testimony to the Joint Economic Committee was a much more pessistic assessment of the economy's immediate prospects amid a trio of crises — housing, credit and financial.

It now appears likely that gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly," Bernanke told lawmakers. GDP measures the value of all goods and services produced within the United States and is the best barometer of the United States's economic health. Under one rule, six straight months of declining GDP, would constitute a recession.

Still, Bernanke said that he expects more economic growth in the second half of this year and into 2009, helped by the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses as well as the Fed's aggressive reductions to a key interest rate. Nevertheless, the chairman acknowledged uncertainty about the Fed's next steps, notwithstanding the mounting economic woes
more at above link..

[SummerSailing81]

Well there's a newsflash - NOT!

[harvest]

Yeah we all know Bernanke and the Fed always look in hindsight. The fact that he even admitted this means it's a whole lot uglier underneath the surface.
As for the stimulus package, it's not going to do a thing for the economy. Americans aren't going to spend that extra $600 on consumer spending. They're gonna use it to catch up to inflation and gas. We have lived off of credit cards and equity the past 5 yrs, and the bubble has burst leaving huge debt, and there's no more room to "rob peter to pay paul".

We are in the beginning of a long market correction that will not be over quickly. We can't forget the billions of dollars in loans that are still due to adjust over the next 2 yrs. We still have waves of foreclosures that are expected, not to mention the estimated 200,000 banking job layoffs that expected over the next couple years. :ohno

[RobertB]

Bernanke and company are pretty incompetent. Still, it appears what they are doing is to spread the bad news gradually in doses. Such as, "we are not in a recession" statements of the past, then, "we might be experiencing a downturn," followed by, "the economy might shrink for a few months." The Fed is a big joke and game, and the public has to pay for poor decisions made by a segment of the population and the financial con men, plus decisions made by the money hungry Fed.

[HSmomto4]

Well judging by the stock market, the people believe him big time about how good the market is. I think may see some growth for a while in the market which means many more people will loose even MORE when the house of cards come down. Now the question is how long will it climb before it comes back down?

[chel0524]

Well judging by the stock market, the people believe him big time about how good the market is. I think may see some growth for a while in the market which means many more people will loose even MORE when the house of cards come down. Now the question is how long will it climb before it comes back down?



On the other hand, this gives us more time to prepare and try to get our familes on board also.

[can4christ]

Bernanke and company are pretty incompetent. Still, it appears what they are doing is to spread the bad news gradually in doses. Such as, "we are not in a recession" statements of the past, then, "we might be experiencing a downturn," followed by, "the economy might shrink for a few months." The Fed is a big joke and game, and the public has to pay for poor decisions made by a segment of the population and the financial con men, plus decisions made by the money hungry Fed.


No, they are perfectly competent. They know exactly what they are doing, they have done it before. 1929

“In March 1929 there was a little meeting in New York. After that meeting, Bernard Baruch sells out [of stocks], the Rockefellers sell out, the Kennedys sell out, all of the big bankers sell out. The big people were out [of the stock market] by August. Then the Federal Reserve cut the money supply four times in a month. There were four drastic reductions in the money supply.

“Then one day in October the banks called all of their loans on all of their margins at the same minute. Every bank in the money desk – and these were call loans, callable on demand. People had their stock on margin, borrowing 90%. Now they went to the banks and the banks weren’t lending, they were calling. They run to the market and everyone’s trying to sell. The banks had shut the money off. The call desks were closed. The money desk shut down….and all these people were running around trying to sell because they had to sell 10% down and they were wiped out. All of the people who weren’t on the inside were gone.”

http://news.goldseek.com/ClifDroke/1207548060.php

[Biblenuggetlady]

Could the economy be, being propped up until Bush's term/election is over? It seems that most people realize the danger the US is in, economically...and so many pieces of gum are being stuck on the holes that are springing, but no one wants to do what needs to be done, at least for now? The "stimulaus package" is the dumbest thing I've ever seen! With our debt, schools having budget shortages, etc...they hand out this "treat" to appease people, feed their greed? And they are giving them out and asking people to spend it! My grandparents are rolling over in their graves, what happened to saving and being fiscally responsible? We are not in the financial place to be handing out money like that, if there is such a surplus use it to bring our debt down, give the money to schools, etc...it just seems to be a tool to appease. :idunno

[Issachar]

It is very likely that the elections are tied to what is going on with the fed's propping schemes. They are up to more than that, but the elections are a part of it. They could either prop right through Nov. if they want a Republican in or they might prop right up to ... say, Sept. and let the economy crash some so the Republican's can be blamed and a Democrat win. I'd say the former rather than the latter.

My grandparents are rolling over in their graves, what happened to saving and being fiscally responsible? People, even our grandparents, will do whatever they can to maintain a certain lifestyle; certainly one that they are used to. Well, unless the change is a step up. In order for American society to maintain the lifestyle it has enjoyed since WWII, they have to spend more because the central bankers will assure, through fiat, that wages will not keep up with the inflation they induce into an economy. Saving 40+ years ago was around 20% of a household's income, on average, in America. Today, on average, it is about negative 2%. People are not living better today than they did when savings were 20%. They still have a house, two cars on average, a tee vee, stereo system, movies to go to, bowling, skating ... eat at restaurants, buy clothing, gasoline, maintain houses and transportation, go to the doctor, dentist, etc., college ..... it just takes a lot more of one's income now to do it. That is because intrinsic to fiat currencies, is inflation. Remember, inflation is not prices going up ... that is merely the result of inflation. Inflation is an increase in the money supply. Under a fiat system, VERY private bankers, in VERY direct opposition to the US Constitution, create money out of thin air, thereby devaluing the currency. It all makes sense.

Issachar