We are all wondering the same big question….when will this recession come to a final end? We are all sitting around hoping, praying and looking to the government and our new president to tell us when this will be all over. On Tuesday chairman Bernanke put thing’s into somewhat of a perspective for us.
Mr. Bernanke stated that a full recovery for the recession is at least a full year away still, and that is only if things go exactly as planned right now. He stated that if the government, congress and federal reserves actions are to go as planned then 2010 will be our year of recovery. Can we wait that long? Will there be small steps of help during this year to get us by?
Mr. Bernanke acknowledged there was a risk that the economy would become even worse than the Fed is currently forecasting. The global nature of the economic slowdown, as well as a “so-called adverse feedback loop” – the idea that economic and financial conditions become mutually reinforcing – threaten to delay recovery, he said.
Mr. Bernanke stated that it was a wise decision to keep bailing out all of these large companies, that if the government had just let them be and held them totally accountable for their mistakes, that by time they learned their lesson the whole sector of their business would have gone down first.
What are your thoughts on the hope of recession being over by 2010?