Bernanke Says U.S. Economic Growth Too Slow, Even With Fed Bond Purchases

jodnet ^ | 24 Sept

[flowerplough]

“We avoided what could have been a global meltdown,” Bernanke said. “But even so, we got a taste of how powerful a financial crisis is on real activity. That blow which knocked the world economy into a deep recession in the second half of ‘08 and the early ‘09, we are only recovering from that at a pace slower than we would like.”

U.S. central bankers said Sept. 21 they were “prepared to provide additional accommodation if needed to support the economic recovery.” They also left the benchmark lending rate in a range of zero to 0.25 percent while noting that inflation measures were at levels “somewhat below” the central bank’s mandate to achieve stable prices and full employment.

The Fed statement boosted speculation the central bank will buy more Treasuries sometime later this year. Yields on U.S. 2- year notes fell to a record low of 0.407 percentage point Sept. 21 and were 0.440 percentage point in New York trading yesterday. The Standard & Poor’s 500 Index rose 2.1 percent to 1,148.67, a four-month high. Fed officials next meet Nov. 2-3.

[flowerplough]

RE: "We avoided what could have been..."

In clips I've seen from a late 70s Aussie comedy show, old Paul Hogan advertised a "Roo Away" spray that kept kangaroos from invading ones backyard barbies: "Use "Roo Away" to keep the kangaroos at bay. (Sprays mist from a can into the air.) No kangaroos in your backyard? Your neighbors must already be using "Roo Away". Chip in!"

[Southack]

Actually, he’s right that the meltdown could have been worse.

What he’s *not* telling you is that you need a full crash before the economy will start to recover.

Thus, his bailouts did indeed prevent things from being worse...and his bailouts also are still to this day preventing things from getting better.

Japan has been doing the same thing to their zombie economy for each of the past 21 straight years. The Japanese, you see, fear a full crash more than they loathe decades of stagnation.

And so far, we’re copying them.

[BobP]

What he’s *not* telling you is that you need a full crash before the economy will start to recover.

Thus, his bailouts did indeed prevent things from being worse...and his bailouts also are still to this day preventing things from getting better.

---------------------------------

We are stuck with trillions in lost equity combined with trillions more in debt. Either we reverse this or we are the last generation of Americans. The elections in November are surely our last hope to force the federal beast back into its constitutional cage.

Bailouts only beget more bailouts as they reward irresponsible behavior.

Look out Zer0, the hope and change is a coming... and not from you.

[screaminsunshine]

Rush said Friday they are loaning out money overseas to buy stock and prop up the market.

[mazda77]

I have thought to myself they were using the stimulus money to prop up the markets because it just didn’t make sense. Obviously bad economic news was immediately followed by rises in the market which was exactly the opposite up to the time before this administration.

It wouldn’t be stretching it too far to consider Soros having setup off shore private brokerages whose only purpose was to execute such a plan with it being discovered on many occasions that stimulus funds were being spent overseas.

[screaminsunshine]

This whole deal seems to be a hoax.

[Dem Guard]

"It wouldn’t be stretching it too far to consider Soros having setup off shore private brokerages whose only purpose was to execute such a plan with it being discovered on many occasions that stimulus funds were being spent overseas."

Wouldn't that be a cozy way to make a boat load of money to plug in to political activities!

[LibLieSlayer]

THE ONLY THING THAT I WANT TO HEAR FROM bernanke’s MOUTH IS, “LIFE IN PRISON IS A B!TCH”!

LLS

[Beowulf9]

Nothing Bernanke says has ANY credibility.....he didn’t even see the housing crash coming and thought he had slowed down the economy just enough to keep it from “overheating” by summer 2006.....

when he was worried about “full employment” and the price of labor being driven up by demand.....

It makes me sick....when the price of gas goes up, he and Greenspan blame India and China and “demand”...

But when the price of labor gets driven up by demand as the unemployment rate falls, then they worry about “inflation” and put us into a recession....

No wonder the LEFT is making such headway against “greed” and CEO pay and such.....

I question the very idea of 5% “full employment”...because —when the price of anything goes up-—even labor-—the demand goes down and the supply goes up......

Plus...you have 10% unemployment in one state versus 3% unemployment in another....

The Fed should NOT interfere with markets, especially not housing and labor markets.....

The Fed tries to kill demand for labor in the housing market and start a trickle-down slowdown in hiring across the economy...and always screw things up.

You can increase the supply of labor instead of reducing the demand by thinking you can micromanage the economy through the housing and labor markets.....which
is NOT the job of the Fed...