In my view, it is the Stimulus packages which is resulting in such a muted recovery. Recession comes for a reason.. that reason was very simple in this latest one.. it was suppose to clean up the mess created by banks and financial industries in and around housing area. It was suppose to clean it up and wipe out all the bad apples from The Big Apple.. I don't know why we tried to stop its natural process by inserting and saving and preserving those bad apples. We came up with all sorts of excuses but in the end net effect is going to be same.. Either you take a big hit once and be done with it or you try to defer those hits and then keep on prolonging sufferings for everyone in long term.
Moreover, because of these stimulus packages, I feel we have created business atmosphere where we are encouraging everyone to take even more risks and and continue to do this so called innovative but unruly behavior which by no means is acceptable business practice.
If we try to insert more of these stimulus, we will be further delaying this pain and suffering.. We better get rid of this and should clearly tell that neither we need any stimulus nor we will provide any. Let Nature Take care of it!!!!
Bernanke makes no pledge on new stimulus
Senate panel seeks to quiz him about Libor
By Binyamin Appelbaum
New York Times
WASHINGTON — Federal Reserve Chairman Ben Bernanke said Tuesday that the Fed was seeking greater clarity about the health of the recovery as it weighs the need for a new round of economic stimulus.
In testimony before the Senate Banking Committee, Bernanke also strongly defended the Fed’s actions after it learned of problems in 2008 with the London interbank offered rate, or Libor. And he renewed his warnings that congressional inaction on fiscal policy threatens to upend the recovery and tip the economy into recession.
Repeating a formula he first articulated earlier this summer, Bernanke told the committee that the Fed’s decision about additional economic stimulus would turn on its judgment about the likely pace of job growth in coming months.
The crucial issue, he said, is “whether or not there is in fact a sustained recovery going on in the labor market or are we stuck in the mud.”
Bernanke avoided commitments to Fed action, saying that Fed officials were continuing to review the data and to consider their options. He also noted that the Fed could take steps other than asset purchases.
“We are looking for ways to address the weakness in the economy should more actually be needed,” Bernanke told the committee.
The members of the committee seemed little interested in questions of monetary policy, however, instead preferring to question Bernanke about revelations that banks had manipulated Libor, a benchmark rate used in determining the value of a wide range of financial assets.
Moreover, because of these stimulus packages, I feel we have created business atmosphere where we are encouraging everyone to take even more risks and and continue to do this so called innovative but unruly behavior which by no means is acceptable business practice.
If we try to insert more of these stimulus, we will be further delaying this pain and suffering.. We better get rid of this and should clearly tell that neither we need any stimulus nor we will provide any. Let Nature Take care of it!!!!
Bernanke makes no pledge on new stimulus
Senate panel seeks to quiz him about Libor
By Binyamin Appelbaum
New York Times
WASHINGTON — Federal Reserve Chairman Ben Bernanke said Tuesday that the Fed was seeking greater clarity about the health of the recovery as it weighs the need for a new round of economic stimulus.
In testimony before the Senate Banking Committee, Bernanke also strongly defended the Fed’s actions after it learned of problems in 2008 with the London interbank offered rate, or Libor. And he renewed his warnings that congressional inaction on fiscal policy threatens to upend the recovery and tip the economy into recession.
Repeating a formula he first articulated earlier this summer, Bernanke told the committee that the Fed’s decision about additional economic stimulus would turn on its judgment about the likely pace of job growth in coming months.
The crucial issue, he said, is “whether or not there is in fact a sustained recovery going on in the labor market or are we stuck in the mud.”
Bernanke avoided commitments to Fed action, saying that Fed officials were continuing to review the data and to consider their options. He also noted that the Fed could take steps other than asset purchases.
“We are looking for ways to address the weakness in the economy should more actually be needed,” Bernanke told the committee.
The members of the committee seemed little interested in questions of monetary policy, however, instead preferring to question Bernanke about revelations that banks had manipulated Libor, a benchmark rate used in determining the value of a wide range of financial assets.
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