Bernanke: Recession Could End in 2009
“This outlook for economic activity is subject to considerable uncertainty, and I believe that, overall, the downside risks probably outweigh those on the upside…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…
“This outlook for economic activity is subject to considerable uncertainty, and I believe that, overall, the downside risks probably outweigh those on the upside...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.” — Fed Chairman Ben Bernanke
> “…healthcare… Socialization WILL NOT WORK.”
Really? It seems to work for every other “wealthy” nation.
> “most economists agree that the New Deal only succeeded in extending the Great Depression.”
Name one – just one – credible economist who believes that.
“There’s a very small chance, but I just might be your boss.”
Then you woke up. But I’ll tell you what – if you want to hire me, send me a description of your company with some background information on its capitalization, and perhaps I’ll consider it. But I don’t come cheap. And there are sevaral other entities that currently pay a fair price for my services, so get in line.
East New York,
I agree my blabbering on this website won’t change anything, and neither will yours, of course.
But how do you know I don’t employ you?
There’s a very small chance, but I just might be your boss.
Legion,
I hope you’re right about our economy recovering any time soon. I honestly don’t see any reason it will.
The US is in the process of developing a centrally planned economy similar to the former Soviet Union’s. And with these enormous tax payer debt financed government bailouts, the free market is being crushed to death. Once something like this begins, it’s impossible to stop . . . much like a drug addiction.
” Putting our grandchildren into debt in order to burn through hundreds of billions of dollars with the hope of stimulating the economy is beyond stupid — it’s evil.”
Hmmm…that didn’t seem to be a problem when we were running up billions of dollars fighting a pointless and unecessary war. Where was your pathetic whining and hand-wringing then?
“tax the wealthy more!”
Yeah, that’s right. Of course, all wealthy people have been paying their fair share of taxes up to this point and would NEVER devise ways to shield their true income. Yeah.
“As you point out, I’m not famous or well known, but what difference does that make?”
Good question. I’ll tell you – it puts you in the same category as “The What” – a lone, unqualified, random voice of hysteria baying in the wilderness, like any other nattering nabob of negativism. Your opinions are about as valid as those of the guy on my block who sweeps the sidwewalks for spare change, and are just as likely to be considered (NOT) by this country’s leadership.
“I’m a self employed business person with business interests in the US. It’s folks like me who pay big taxes and employ folks like you.”
Laughable. You don’t employ me, or even know me. I sure as hell don’t need YOU to maintain my (profitable) living and livelihood. Furthermore, I have been self-employed at various points of my career, still perform consulting work on the side, and could EASILY return to the full-time self-employment paradigm if I were interested. You’ll have to do better than that, kid.
“I’d say my opinion is very very important.”
Sure it is…to you.
Ironballs is right, free markets should be just that, free. most economists agree that the New Deal only succeeded in extending the Great Depression. Even FDR’s own treasury secretary said that.
First and foremost, he should keep the hell away from healthcare. The HMO’s have screwed this area enough. Socialization WILL NOT WORK. The problem with healthcare is one of mis-allocated resources, it can be fixed by applying free market principles effectively to existing resources; the solution is already available in the use of Health Savings Accounts (HSA’s), a system which understands that most people between 20-60 are relatively healthy and rewards that without fattenning the wallets of Aetna, US Healthcare, Oxford, GHI executives. Another idea is not paying for the healthcare failures of other nations, i.e. Mexico (mexico basically has one solution for it’s poverty problem; export it to America). And yet Mexico has the world’s richest man Carlos Slim, that same guy who just bailed out the NYTimes temporarily with a 14% loan.
Healthcare makes up 17% of GDP and Obama wants to take on this issue next? Without even mentioning the very necessary and very important TORT reform that every single doctor you speak to will tell you is at the heart of many of the medical industry problems. Oh yeah, I forgot, Obama and his cronies are all lawyers. no wonder.
Anyway, the economy may come out of this by it’s own momentum with some help from the stimulus package, but I suspect it will be in spite of the Washington efforts to govermentalize everything in site, not because of it.
Northsloperenter,
I appreciate your open-mindedness as opposed to the ultra liberal milkshakes most posters on this site drink. Unfortunately, you believe incorrectly that somehow the failure of a few big Wall Street banks and decrepit car manufacturers is a bad thing for ordinary folks like you and me.
I disagree. Those companies deserve to fail and we’d be better off if they did. Other lenders will appear. It’s how free market capitalism works.
IB,
You are entitled to your opinion, but you have not made a convincing argument that allowing the finance industries to go bankrupt would have less of a negative effect in the long term than excessive government borrowing.
Our government, for better or worse, does get to borrow in its own currency, which is an advantage many countries do not have.
On the other hand, a collapse of the finance industry and various debt-dependent companies and the stifling of new business development due to the lack of credit for entrepreneurs would result in a significant reduction in tax revenue.
This lost tax revenue would have to be addressed by either (1) higher taxes, (2) significantly less government spending, or (3) more government borrowing.
#1 and #3 create the same situation you are unhappy with now, and #2 exacerbates the downturn in the economy further.
The only argument I can see in support of your position is that the downturn in the economy would not be particularly severe or prolonged if the government just let the banks go under, but I have seen no one — no one — with any economic credentials make that particular argument.
The only other argument is that massive unemployment, homelessness, food doles and tent cities are acceptable outcomes.
Can’t see that being particularly good for anyone.
nsr