Bernanke: Recession Will End Soon But Pickup Will Be Slow

[sabra]

Source: CNBC

The U.S. economy will begin to turn up later this year provided the financial sector continues to mend, although unemployment will remain high for a while, Federal Reserve Chairman Ben Bernanke said Tuesday.

In testimony to a congressional committee, Bernanke sounded more confident that a recovery was at hand than he had in recent weeks.

He said the U.S. housing market may be bottoming after a three-year slide, and pointed to tentative signs of a rebound in consumer spending, which is the driving force behind the economy.

"We continue to expect economic activity to bottom out, then to turn up later this year," Bernanke said in the testimony to the Congress' Joint Economic Committee.

Read more: http://www.cnbc.com/id/30578739

[izquierdista]

1. There will be growth in the spring

[aquart]

3. Says it all.

[ixion]

2. More happy HS from out government

all will be well in the garden, at least until it all goes to hell. :eyes:

[earthside]

4. Okay.

And after all the borrowed stimulus money has been spent and all of the corporate bailout money has completely disappeared ... then what?

We're going to be borrowing to buy Ford Excursions again? We're going to be borrowing to buy houses twice as large as we need again? We're going to be putting new video game systems on our credit cards again?

Really?

[SeeHopeWin]

5. The Obama recovery is well on its way!!! President Obama FIXED the economy!

I am so proud of him, just few weeks, we really thought it was the end of our life as we know it...Obama's recovery plan and stimulus package have worked and will continue to work for the next 2 years!

[Javaman]

10. And you voted for whom? nt

[canoeist52]

6. I believe he said we're "hopeful" the the economy will recover.

Weasels.

[OhioChick]

7. I disagree...

No Jobs = No Recovery.

[dtotire]

8. It Will Bottom Out

But the economy will still be at a depressed level. There will be very slow growth during the following year, with still a lot of unemployment. We be lucky if we reach full employment by late 2012, but it's doable if we keep spending.

[mbperrin]

9. Actually, with stagflation, we'll be lucky to have "full" employment by

2019.

Expect unemployment rates (even the government fixed numbers) to exceed 15% in the near future, and stay there for 5-8 years, with annual inflation rates exceeding 10% annually for the same period. This will essentially double prices, run out the clock on older folk wanting to retire, but who will die working.

Then, after the birthrate drops below the current .17 and stays there, we may have some hope of improvement. Assuming that China and other foreign lenders recycle their dollars here by spending rather than taking big discounts on transfers to others.