Today in a Congressional Meeting to discuss what happened with Bear Stearns, Federal Reserve Chairman Ben Bernanke expressed concern about the economy "contracting" during the first half of 2008.
The following is a direct quote from a Yahoo! News article about this topic (read the full report here):
The following is a direct quote from a Yahoo! News article about this topic (read the full report here):
- Housing, credit and financial woes are threatening to push the country into a deep recession. The situation has emerged as a top concern for presidential contenders and a hot-button issue for Congress. It has thrust the White House and the Fed into crisis-management mode.
Faced with mounting home foreclosures and job losses, Bernanke has been under immense political and public pressure to provide relief and help turn around a faltering economy.
My Take
The Federal Reserve is always very careful to never say the "R" word (recession); however today, it was undeniable that Bernanke was expressing concern about a recession. It took them a while to admit it, but I think now it's official... We all agree that we're in a recession.
2 comments:
http://money.cnn.com/2008/04/02/news/bernanke_muddle.fortune/?postversion=2008040215
The above link provides a diffrent prespective. I am not willing to say we are in a Recession yet. 2 plus quarters of negative growth equal a recession, we are not there yet. Is the housing sector in a Deprseeion - Yes of course.
While I agree that a recession is defined as two or more quarters of negative growth, after the 2nd quarter they usually declare that the recession started during the previous quarter. The question is, do you believe that the next quarter will be negative or not?
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