BERNANKE - DR GLOOM
is THE BERNANK a silent Bush (W) Supporter, as whispered by Move-on-Org??
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Bernanke gloomy on economic outlook
Ben Bernanke offered a gloomy outlook for the US economy but the Federal Reserve chairman offered no hint of further monetary easing in testimony to Congress.
“We are looking very carefully at the economy, trying to judge whether or not the loss of momentum we’ve seen recently is enduring, and whether or not the economy is likely to continue to make progress,” he said, warning that progress in reducing a 8.2 per cent unemployment rate “seems likely to be frustratingly slow”.
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IN US Economy
The testimony disappointed markets – which are on tenterhooks for a signal of further monetary easing from the Fed – with stocks falling and the dollar rising before turning around by midday in New York.
A run of weak reports on the economy, with net job creation falling to 80,000 in June, has led to speculation that the Fed could ease policy further as soon as its August meeting.
Mr Bernanke said that recent data points to annualised growth of less than 2 per cent in the second quarter of 2012. “Households remain concerned about their employment and income prospects and their overall level of confidence remains relatively low,” he said.
The Fed chairman set out a list of options for further easing but refused to say which he might prefer. “The logical range includes different types of purchase programs. That could include Treasuries or include Treasuries and mortgage-backed securities. Those are the two things we’re allowed to buy,” he said.
Asset purchases – also known as quantitative easing – are a way of driving down long-term interest rates to boost the economy when short-term rates are already at zero.
The Fed’s other options include lending via the Fed’s discount window, communications about future policy, or cutting the interest that the Fed pays banks on excess reserves, Mr Bernanke said. “We haven’t really come to a specific choice at this point, but we are looking for ways to address the weakness in the economy should more action be needed to promote a sustained recovery in the labour market.”
New data on Tuesday showed little sign of inflationary pressure – the overall consumer price index was up by 1.7 per cent on a year ago – and a rebound in industrial production, which was up 0.4 per cent in June after falling in May.
Mr Bernanke chided Congress for its failure to act on fiscal policy, citing it as one of two main risks to the economy alongside the eurozone crisis, and warning against a repeat of the market volatility and loss of economic confidence caused by last summer’s debacle over raising the debt ceiling.
The Fed chairman has ramped up his rhetoric on fiscal policy with each successive visit to Capitol Hill, but there is little sign that Congress is willing to compromise before the November election, even in order to boost growth.
“The most effective way that the Congress could help to support the economy right now would be to work to address the nation’s fiscal challenges in a way that takes into account both the need for long-run sustainability and the fragility of the recovery,” said Mr Bernanke. “Doing so earlier rather than later would help to reduce uncertainty and boost household and business confidence.”
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What the H!@#$% does that mean. No wonder we're not making any progress anywhere. Obama wants to spend us into oblivian. Billions or rather trillions later we see nothing. No results, No progress, just more uncertainty about what stupid action he will take next. On top of that he's going after small business which is the #1 job creator in this country. How could anyone vote for this economic terrorist? How come everyone is just standing there watching as he is taking America apart? What's wrong with Americans?
Our next election is shaping up to be as big of a sham as the last. Know why Sarah Palin's bus tour was really canceled last year? Do you know why she stayed 30 miles away from the second debate and chose the death of Steve Jobs to announce that she's not running? Know what leaked out? Sarah Palin and Cain aren't in the race for the same reason, the truth leaked out.
Search PalinsDirtyLittleSecret for the BIGGEST cover up in world history before it disappears forever.
This is what you do when you have no case to stand on, as the facts are horrifying. Now I guess even Ben is a doomer.
Stop trusting these criminals on the news, in the banking system and in the government.
Are you living under a rock. The problem is Obama and his Socialist Democrats.
Get a clue dude.
If we had a competent leader in the White House we could do this. With the current dufus in the White House things will only get worse.
Vote for anyone other than Obama and his Democrats this November - and beyond.
It's funny that to a lot of other ears, there was a clear hint he is going to do it. The strongest argument is basically he has to do it, because he promised if things got worse, he would. What I suspect is those who are most anxious for another round of easing are thinking more of their stock portfolios than the unemployment rate.
Anyway, I suppose this is what they call confirmation bias.
Be afraid of what you hear,
And give no heed to Bernanke's crew
Nor to La lady Francaise with her wand.
No more profits no more gains.
All illusion for those who say,
" Pour more money in, that's for gain,
Add more and more to the gravy train".
But the truth is coming for those liars
Who prevent the tide coming in and out
Time and time again we'll see it clear
Money for nothing is nothing real.
BB will be pleading with his fellow Fed members to vote for it at their next meeting.
All these years, the Americans and the West Europeans were being drugged with a combination of high credit and protection. These people forgot what utilisation of LIMITED resources was. They were drugged in to compliance.
Bernanke (and the US administration) is merely treating the symptom. The underlying cause is huge money supply (the cancerous growth) that is not backed with a sound business plan. Well, I guess that the US will implode under it's own drug overdose by 2016. Before that, . I expect Some European governments will topple and chaos will reign in the BAD 3 (US, Western Europe and Japan - Japan may escape). And not treating will bring the chaos closer and more violent.
What will happen is that the stock markets will die a natural death and at the same time you will see an increase in PE and VC funds. These funds will increasing invest in companies bearing in mind that their exit routes will not be through the stock market but sale to strategic investors. George Soros has returned money to out side investors in the fund, stock markets are going in to lower orbits over a period of time with short spikes (very high) because growth is lacking in the OECD countries.
Best wishes
Kishore Nair from Mumbai