Jamesb101.com

commentary on Politics and a little bit of everything else

Chair of the Federal Reserve forcasts moderate growth thru 2010…..

Ben Bernanke predicted today that the United States economy would continue its slow growth, thru the middle of next year.….his statment was an attempt to help the US dollar in financial markets……but he also acknowledged that employer’s are waiting to rehire help, trying to get as much productivity out of current workers as possible……

One must always remember that although the Fed has helped in the recession…they are always more sensitive to inflation fears…and once the economy starts to really come back they will be raising interest rates which will cool off the housing market and also affect the auto industry…tes, they’ve got quite a balancing act to perform……

Advertisements

November 16, 2009 - Posted by | Government, Media, Politics, The Economy | , , , , ,

7 Comments »

  1. The last two days economic indicators have not been pointing to that much of an upsurge in growth, in fact the economic indicators have basically been flat since the third quater ended. I would honestly look for the economy to stay where it is, flat with no growth at all until at least the spring time. And then look for slow growth. I would say though that the unemloyment number will continue to rise for the next six months, which if everything else stays flat, could actually tip the scales the other way and head towards the second dip in the recession. It is defintely possible.

    Comment by BenjaminDOG | November 18, 2009 | Reply

  2. I know you said that the fed rate will cool off the housing market, but the housing market needs to get hot before we can cool it off.

    Comment by BenjaminDOG | November 18, 2009 | Reply

  3. I don’t agree…..look at the Zeigeist posts I do every week there are real improvements in most of the numbers…we simply do not feel anything on our level…and unemployment is not a good indicator of the overall economy…since, as I keep repeating, it lags and companies aren’t hiring because of productivity…..

    Comment by jamesb101 | November 18, 2009 | Reply

  4. someone we both know has had record growth in mortgages….but his bank feels that that will slow down when the Fed starts raising the rates trying to deal with it worst worry….inflation

    Comment by jamesb101 | November 18, 2009 | Reply

  5. The reason for that may also be because there are a lot less players in the mortage game right now. Since they survived all of the bankruptcies intact they are in a better position than say the ex-mortage giant, country wide financial. There is always two sides to a coin, one man’s loss is another man’s gain.

    Comment by BenjaminDOG | November 18, 2009 | Reply

  6. His bank is right it will slow down as the Fed raises rates and in April if they don’t extend the 8,000 dollar tax credit (again) to first time home buyers the housing market could stall.

    Comment by BenjaminDOG | November 18, 2009 | Reply

  7. I’ll bet the White House doesn’t let that happen…..

    Comment by jamesb101 | November 19, 2009 | Reply


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: