A Good Policy?
Our economy and financial system have gone down hill. Federal Reserve chairman Ben Bernanke told Congress that the economy is facing numerous difficulties, which include strains on the financial markets, rising unemployment and the housing crisis.
Bernanke warned that inflation is getting worse and that rising prices for energy and food are making the chances of inflation even worse. The Labor Department reported wholesale prices shot up 1.8 percent last month, which means inflation is now rising at a faster pace than at any time in the last 25 years.
Bernanke’s testimony came two days after the federal government made provisions to assist Fannie Mae and Freddie Mac in the event they need it. These two companies hold or guarantee $5 trillion in mortgages, almost half of all the mortgages outstanding in the nation. As more and more people default on those mortgages, the bigger the problems that are created for the companies that are holding that paper.
One of the nation’s big banks, IndyMac, failed and has been taken over by the federal government. People in southern California waited in long lines to withdraw their money a scene reminiscent of the Great Depression.
Investment bank Bear Stearns went belly up in March and was eventually taken over by JPMorgan Chase. More than 90 banks nationwide are currently on the FDIC watch list.
Furthermore, corporate profits are slowing and the stock market is tanking. Energy prices continue to surge, while the dollar continues to hit record lows against the euro.
Nevertheless, Bush recently assured us that our financial system is “basically sound.” When asked when will the economy turn around? Bush responded: “I'm not an economist, but I do believe that we’re growing...I’m an optimist. You know, I believe there’s a lot of positive things for our economy. But I will tell you it’s not growing the way it should. And I’m sorry people are paying as high gasoline prices as they are. And all I know is good policy will help expedite, you know, an will strengthen our economy.”
Bush doesn’t tell us why he’s optimistic or any specifics about the “positive things for our economy.” He’s sorry about higher gas prices and states the obvious, which is a “good policy will help expedite and strengthen our economy.” Unfortunately, we aren’t told what the good policy might be, because Republicans don't have a clue.
Bernanke warned that inflation is getting worse and that rising prices for energy and food are making the chances of inflation even worse. The Labor Department reported wholesale prices shot up 1.8 percent last month, which means inflation is now rising at a faster pace than at any time in the last 25 years.
Bernanke’s testimony came two days after the federal government made provisions to assist Fannie Mae and Freddie Mac in the event they need it. These two companies hold or guarantee $5 trillion in mortgages, almost half of all the mortgages outstanding in the nation. As more and more people default on those mortgages, the bigger the problems that are created for the companies that are holding that paper.
One of the nation’s big banks, IndyMac, failed and has been taken over by the federal government. People in southern California waited in long lines to withdraw their money a scene reminiscent of the Great Depression.
Investment bank Bear Stearns went belly up in March and was eventually taken over by JPMorgan Chase. More than 90 banks nationwide are currently on the FDIC watch list.
Furthermore, corporate profits are slowing and the stock market is tanking. Energy prices continue to surge, while the dollar continues to hit record lows against the euro.
Nevertheless, Bush recently assured us that our financial system is “basically sound.” When asked when will the economy turn around? Bush responded: “I'm not an economist, but I do believe that we’re growing...I’m an optimist. You know, I believe there’s a lot of positive things for our economy. But I will tell you it’s not growing the way it should. And I’m sorry people are paying as high gasoline prices as they are. And all I know is good policy will help expedite, you know, an will strengthen our economy.”
Bush doesn’t tell us why he’s optimistic or any specifics about the “positive things for our economy.” He’s sorry about higher gas prices and states the obvious, which is a “good policy will help expedite and strengthen our economy.” Unfortunately, we aren’t told what the good policy might be, because Republicans don't have a clue.
posted by Jim O'Leary | 12:00 AM
0 Comments:
Post a Comment
<< Home