Federal Reserve Chief Ben Bernanke appeared on 60 Minutes and said he believed the recession would end later in 2009. He stated that there would not be any more big bank failures and that the first priority was stabilizing the financial system. Although the general public may be angry at the bailouts, he said that "The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis."
Bernanke also conceded that much of the bailout is not being funded by taxpayer money, but is "more akin to printing money than it is borrowing." As the economy warms up, Bernanke said the Fed will have to raise rates in order to prevent inflation.
Look for rates on Treasuries and other deposit products (savings accounts, cds) to head up if economic data begins to improve.
Comments
jbn14
March 17, 2009
He certainly did an excellent job on 60 Minutes, but it is going to take a little more than a pep talk from Ben to get us out of this mess. What is more interesting is what he said about the AIG mess - he took action against collateral to avoid a systematic collapse, an action that apparently he couldn't take with Lehman.
Is this review helpful? Yes:0 / No: 0
Add your Comment
or use your BestCashCow account