Reuters
Posted on 04/14/2009 1:23:15 PM PDT by NormsRevenge
President Barack Obama and Federal Reserve chairman Ben Bernanke on Tuesday voiced wary optimism that the US economy is no longer in freefall, even as new data showed retail sales fell in March.
In a speech at Georgetown University, Mr Obama reiterated that he detected “glimmers of hope” in the economy. He said the $787bn stimulus, the $700bn bank recapitalisation programme, $70bn housing plan and extra federal aid to Detroit auto-companies were “starting to generate signs of economic progress”.
Meanwhile, Mr Bernanke said: “We have seen tentative signs that the sharp decline in economic activity may be slowing.” He added that “a levelling out of economic activity is the first step toward recovery” – though he did not say when he thought this levelling out would take place.
The comments by Mr Obama and Mr Bernanke underscore a shift in US official rhetoric, with policymakers now prepared to draw attention to the slowing in the rate of economic decline.
In a speech late last week, Lawrence Summers, director of the National Economic Council, said the “sense of freefall” will be over within the next few months.
However, while top officials in both the US administration and central bank think the economy will probably bottom out in the second half of this year, they remain wary of calling the turn in the economic cycle.
They regard recent signs of green shoots as hopeful but far from definitive, and do not want to undermine support for continued extreme fiscal and monetary measures that may still be needed to support growth. March retail sales figures released yesterday raised questions as to whether US consumer spending has yet found a floor following a sharp plunge in late 2008. Sales fell 1.1 per cent from February, with declines in every category apart from food and health.
Mr Bernanke said “we will not have a sustainable recovery without a stabilisation of our financial system and credit markets” – though he added that “we are making progress on that front”.
Offering his lengthiest defense of his administration’s handling of the crisis to date, Mr Obama rebuffed criticism that it was running excessively large deficits, saying the “last thing a government should do in the middle of a recession is to cut back on spending”.
The president, who is 85 days into his administration, said he had used the time to “clear the wreckage” from the economic collapse in order to prevent the recession from getting larger.
But he cautioned against expectations of a rapid recovery. “The severity of this recession will cause more job losses, more foreclosures, and more pain before it ends,” he said.
Both Mr Obama and Mr Bernanke defended their decision to avoid bankruptcies of large financial institutions ahead of the results of bank stress tests this month. Mr Obama gave his clearest defense so far of the administration’s decision to avoid nationalising the banks.
Banks that were shown with insufficient capital in the upcoming “stress tests” would be held accountable and forced to clean up their balance sheets.
“Governments should practice the same principles as doctors – first, do no harm,” he said. “We believe that pre-emptive government takeovers are likely to end up costing taxpayers even more in the end . . . because it is likely to undermine rather than create confidence.”
He’s kidding himself...which is no big deal.
The fact that he believes it is the problem.
Hey obama, Get your filthy hands off the economy and quit ‘hopin’... It’ll recover.
His hoping is getting him not very far nowadays. It may have buffaloed half the mind numb robots, but it’s not moving the economy in the right direction, which is probably his plan anyway.
wary optimism sent the market down another 140 points
this douchebag should just stay home and papertrain the dog - using the Washington Post of course
"May be slowing!"
We hope it may be slowing!
Now that there is leadership!!! You betcha!
Obama is hoping the dead horse will race again.
he really inspired the markets today, DOW down 137
He has hope in one hand and shit in the other, hope he enjoys his shit, he made it.
Can there be ANY THINNER SOUP than a 'hint' at a 'hope'? What does this actually say? Does Obama hint at a recovery or does he hope for a recovery? Or did our esteemed President just give a long speech because it was on his TelePrompTer and the puppy just messed on the carpet?
Yet this Financial Times writer probably got it right, Obama dare not raise the bar of hope too high least everything be exposed as a 'Potemkin Village' of recovery to be rapidly followed by a despair of hyper-inflation and taxation.
...Reminds me of when “Please, please me” by the Beatles went to number one. Someone said to J. Lennon, The guys at Decca records didn’t sign you a couple of months ago, I’ll bet they’re kicking themselves now. Lennon said, I hope they kick themselves to death...
Full agreement.
he’s lying.
all he has to do is ask congress to cut corporate taxes,
and jobs will be created.
.
.
all he has to do is ask congress to cut corporate taxes,
and jobs will be created
“last thing a government should do in the middle of a recession is to cut back on spending”.
http://www.professorfekete.com/articles/AEFCritiqueQuantityTheoryOfMoney.pdf
A CRITIQUE OF THE QUANTITY THEORY OF
MONEY
Further evidences of the onset of Great Depression II
Antal E. Fekete
Professor of Money and Banking
San Francisco School of Economics
Obummer laid out his 5 pillars of economic recovery.
I’m sure it’s just a minor coincidence that islam has 5 pillars, too.
Eh?
How Presidential. I feel much better already.
I’ll keep my money and my guns, he can keep the change.
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