Many seemed surprised that he would express such optimism that this indeed could be accomplished.
But much like Bernanke's remarks to congress last month, he continued to highlight the programs the Fed is using to instill confidence in our largest (elite) banks, and compel them to lend freely again. As you recall most smaller and regional banks never stopped lending.
Said Bernanke, "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."
Just like last week, I'd expect the markets to respond positively to such forward looking optimism.
Posts
I think the money is out there for lending, but the problem is that companies can't value the assests. No one wants to buy companies and real estate for fear that prices will keep falling. When prices reset, then I think you'll see a lot more lending for commercial transactions.
ReplyDeleteBernanke -- ain't he the same guy who said a few months ago that the fallout from the subprime mortgage mess was behind us? Be that as it may, as pointed out here: http://tinyurl.com/daaua9 -- please factor-in the fact that there is a global movement of 1) the middle/working class protesting in every area of the world, with protests drawing as much as 1 million+ people; 2) the targets of their protest are ruling (sometimes formerly ruling) governments, bankers, investment community and certain corporations and their execs; and 3) they seek relief by asking the government to spend money they do not have to bail them out somehow and especially to do so as a priority over spending money to help those they deem responsible for the situation in the first place. Those three factors are common denominators in scores of protests. This cannot be ignored. SO ... the good news and happy prospects do not factor-in the social/cultural/political turmoil bubbling up throughout the world. Buckle your seat belts, there will be massive protests at the G20 meeting in London in a few weeks, followed by multi-city protests in the US the first week in April. Sorry .... mainstream news media is missing the story, but it is very real -- the headlines around the world are about to change: from economic turmoil to political turmoil.
ReplyDeleteDoug
ReplyDeleteWhile protests may occur at the G20 meetings, sentiment in the US is markedly on
the mend.
The general public (and readers here) are now fed up with gloom and doom and the “death of time”… ;-)
The G20 protests are nothing new and indeed reflect the brokenness of the world bankers as they relate to poorer countries. (These protests have persisted in good economic times and bad)
However your dire predictions of "massive protests" and "political turmoil" are significantly overblown and have no facts and data to back up your claims.
GNE
If you wait for the Robbins spring will be over.The best time to lend or buy is when fundamental vaue exists.Perfect timing is impossible unless lucky,a sound decision is knowable.Facts are stronger than opinions.
ReplyDeleteMr. Mast
ReplyDeleteYou continue to bring good news. And let me tell you, your way of thinking has become mine. I refuse to let people get me down about the economy. It affects your entire life. And how you feel about anything, just reflects in your outcome or that of a nation. Thanks for being positive in this dismal world.
Marty
Thanks Marty,
ReplyDeleteIndeed it is a way of thinking and a very deliberate way of choosing to focus on what is good in this life. Congratulations on your refusal to let others get you down...
GNE