Bernanke: Recession May End in 2009

[Barefootsies]

WASHINGTON -- America's recession "probably" will end this year if the government succeeds in bolstering the banking system, Federal Reserve Chairman Ben Bernanke said Sunday in a rare television interview.

In carefully hedged remarks in a taped interview with CBS' "60 Minutes," Bernanke seemed to express a bit more optimism that this could be done.

Still, Bernanke stressed -- as he did to Congress last month -- that the prospects for the recession ending this year and a recovery taking root next year hinge on a difficult task: getting banks to lend more freely again and getting the financial markets to work more normally.

"We've seen some progress in the financial markets, absolutely," Bernanke said. "But until we get that stabilized and working normally, we're not going to see recovery.

"But we do have a plan. We're working on it. And, I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year."

Even if the recession, which began in December 2007, ends this year, the unemployment rate will keep climbing past the current quarter-century high of 8.1 percent, Bernanke said.

A growing number of economists think the jobless rate will hit 10 percent by the end of this year.
Asked about the biggest potential dangers now, Bernanke suggested a lack of "political will" to solve the financial crisis.

He said, though, that the United States has averted the risk of plunging into a depression.
"I think we've gotten past that," he said.

It's rare for a sitting Fed chief to grant an interview, whether for broadcast or print. Bernanke said he chose to do so because it's an "extraordinary time" for the country, and it gave him a chance to speak directly to the American public. (A transcript of the interview was provided in advance of the broadcast.)

Bernanke spoke at a time of rising public anger over financial bailouts using taxpayer money. Battling the worst financial crisis since the 1930s, the government has put hundreds of billions of those dollars at risk to prop up troubled institutions and stabilize the banking system.

Institutions that have been thrown lifelines include American International Group Inc., Citigroup Inc., Bank of America Corp., mortgage giants Fannie Mae and Freddie Mac and others.

Democrats and Republicans on Capitol Hill have questioned the effectiveness of the rescue efforts and have demanded more information about how taxpayers' money is being used.
Bernanke's TV interview seemed to be part of a government public relations offensive. Treasury Secretary Timothy Geithner appeared on PBS' "The Charlie Rose Show" last week, discussing the financial crisis and the Obama's administration's relief efforts.

The Fed chief on Sunday's broadcast repeated his ire over the AIG bailout, saying that over the past 18 months, that was the case that angered him the most. He recalled "slamming the phone more than a few times on discussing AIG."

The government's four efforts to save the troubled insurance giant total more than $170 billion. A collapse of AIG would have wreaked havoc on the global economy, the Fed has said.

AIG ignited fresh outrage over the weekend with news that it's making $165 million in bonus payments to executives on Sunday, most of them in the unit that sold risky financial contracts that caused huge losses for AIG.

When the financial crisis intensified last fall, Bernanke and President George W. Bush's Treasury Secretary Henry Paulson rushed to Capitol Hill for help. That led to the swift enactment of a $700 billion bailout package in October. Since then, banks have received billions in capital injections in return for government ownership stakes in them.

Looking back, Bernanke said the world came close to a financial meltdown. Asked how close, Bernanke responded: "It was very close."

Bernanke admitted that the Fed could have done a better job of overseeing banks. Critics say lax regulatory oversight contributed to the crisis.

Bernanke said he believes all the big banks the Fed regulates are solvent. Big banks won't fail under his watch, Bernanke said -- though, if necessary, the government should try to "wind it down in a safe way."

http://www.foxnews.com/politics/2009...nks-stabilize/

[Agent 488]

everyone of his prognostications have been wrong. best to just ignore what bullshit is dribbling out of his mouth.

[EscortBiz]

the key is jobs, people have to stop losing jobs and companies have to start hiring, once there is a slow down in job loses and signs of hiring then the rest will start to pick up

[Barefootsies]

Originally Posted by budsbabes

everyone of his prognostications have been wrong. best to just ignore what bullshit is dribbling out of his mouth.

Completely agree.

[spunkmaster]

The GAO report that came out a couple weeks ago said the recession will end starting around August-Sept 2009. This would peg the recession end to Quarter 4 with GDP showing a modest 1.5% growth in the last 3 months of 2009.

The Banks are also projected to make a 250 Billion $$ profit for 2009 without the recession ending.

The report that came out a few days ago showed the Banks wrote off 200% more credit card losses then they actually had last quarter and about 150% more mortgage write offs then they actually had. This is what prompted Obama to announce yesterday the economy isn't as bed as they first thought !

[LiveDose]

Bernanke is a fucking clown. End of story.

[Barefootsies]

Originally Posted by spunkmaster

The GAO report that came out a couple weeks ago said the recession will end starting around August-Sept 2009. This would peg the recession end to Quarter 4 with GDP showing a modest 1.5% growth in the last 3 months of 2009.

The Banks are also projected to make a 250 Billion $$ profit for 2009 without the recession ending.

The report that came out a few days ago showed the Banks wrote off 200% more credit card losses then they actually had last quarter and about 150% more mortgage write offs then they actually had. This is what prompted Obama to announce yesterday the economy isn't as bed as they first thought !

Ah. So the usual you mean.

Banks taking advantage of the government hand outs. Then taking the bad climate to write off more tax deductions and claim bigger loses than they really had.

Some of these CEOs need prison time.

[mynameisjim]

I've said the economy will start to recover at the end of 2009. I've also said it will be one of the fastest recoveries ever.

Anyone wanna bet?

[SBJ]

Originally Posted by EscortBiz

the key is jobs, people have to stop losing jobs and companies have to start hiring, once there is a slow down in job loses and signs of hiring then the rest will start to pick up

yup I totally agree.. All these banks and others saying it's not that bad and is getting better isn't helping the TONS of people that are jobless and can't find work

[Rhymesayer]

Why should we believe the same officials who made claims about the economy in 2008 that turned out to be DEAD WRONG?

[Ethersync]

Originally Posted by budsbabes

everyone of his prognostications have been wrong. best to just ignore what bullshit is dribbling out of his mouth.

[Wolfy]

Originally Posted by EscortBiz

the key is jobs, people have to stop losing jobs and companies have to start hiring, once there is a slow down in job loses and signs of hiring then the rest will start to pick up

And the jobs won't come back until the government eases up on this spending, because all this bailout is doing is making it harder for employers to come up with money to employ people.

Simple answer - STOP the bleeding, shut the fucking government down to a bare minimum, and let the PEOPLE fix shit.



What are the odds, huh? Slim to none. This economy isn't fixing itself this year, and the government won't do it in the next 4. Or 8, probably.

We're fucked.

[IllTestYourGirls]

Yeah lets trust the guy who was one of the main causes of this shit to tell us when its over. End the fed, return to sound money.

[collegeboobies]

Bernake is a moron

[bhutocracy]

Originally Posted by Wolfy

because all this bailout is doing is making it harder for employers to come up with money to employ people.

Explain how it's harder for employers to come up with money with the bailout vs doing nothing. There would be a lot less money and a lot less jobs at least in the short term if the government didn't do anything.

[sweetcuties]

He was on 60 minutes, worth a watch... I don't trust what any of these guys say. There's so many foreclosed homes where I'm at... housing and jobs have to be stable first before the economy gets back on track, it will take another 2-3yrs is more realistic

[Wolfy]

Originally Posted by bhutocracy

Explain how it's harder for employers to come up with money with the bailout vs doing nothing. There would be a lot less money and a lot less jobs at least in the short term if the government didn't do anything.

I have an answer to your question.

But first - why don't you show me one instance where the average guy has gotten a job thanks to the stimulus.

In return, I'll show you two instances where an average Joe either lost his health insurance or his job entirely because of the weight put on the employer thanks to the increased financial burden the US government has inflicted on business.

Put or shut up. Period.

[bhutocracy]

Originally Posted by Wolfy

blah blah blah i don't know what i'm talking about

pretty much what I thought, thanks, and given that the government stimulous isn't doing jack against business, i'll get back to stewarding my dozen employees by finishing my lunchbreak.

[bronco67]

I watched that guy on 60 minutes tonight.

He was asked by the interviewer to say something directly to the guys running the big banks. He gave some hollow warning, and his lip quivered like a little bitch as he said it.

this guy has control over NOTHING.

[RyuLion]

I don't understand how people can get so affected by what's happening around the world..they use it as an excuse to be lazy, depressed, etc..

Harden the Fuck Up!

[Ozarkz]

This is not a recession it is a major turning point in world economy.

It is not going to just end... and it's not going to happen in 8 months...

[tiger]

Would be nice if its true. I'm hoping for any time in the first half of 2010.

[Iron Fist]

Originally Posted by budsbabes

everyone of his prognostications have been wrong. best to just ignore what bullshit is dribbling out of his mouth.

Thank you for being the first to state that. He's a fucking idiot, and why people continue to print his drivel is beyond me.

[D Ghost]

Bernake is the biggest tool ever... Ron Paul kicks his ass all day

[kmanrox]

recession cessation (lol) predictions are like assholes........... .......

i've heard from 2009-2012

and bernanke's a schmuck his opinion is not better than the other schmuck's opinions.

[kmanrox]

<--- this schmucks opinion : if all the right strings are pulled we're looking at the end 2010 to mid 2011. prepare yourselves.

[bdld]

i see the bottom as oct/nov this year.

[Reak AGV]

''may end in 2009''

[Wolfy]

Originally Posted by bhutocracy

pretty much what I thought, thanks, and given that the government stimulous isn't doing jack against business, i'll get back to stewarding my dozen employees by finishing my lunchbreak.

You didn't answer my question, douchebag.

[HandballJim]

Bernanke: Recession May End in 2009

and I will get get my tax money back that bailed out the banks.