Thread: Economic Recovery Is Not Real Even If Bernanke is ‘Confide

The Economic Recovery Is Not Real Even Though Ben Bernanke is ‘Confident’

Economics / Recession 2008 - 2010 Apr 15, 2010 - 12:33 PM
By: Mac_Slavo

Federal Reserve Chairman Mr. Ben The-Sub-Prime-Crisis-Is-Contained Bernanke says that he has confidence in the recovery:

Federal Reserve Chairman Ben Bernanke told Congress Wednesday that he has confidence the unfolding economic recovery will have staying power, although it won’t be strong enough to bring quick relief to high unemployment.

“Addressing the country’s fiscal problems will require difficult choices, but postponing them will only make them more difficult,â€

Yes, it does seem consumers are spending again…. but where, exactly, is that money coming from?

Several analysts have suggested that consumer spending is being driven by money that should be going towards mortgage payments:

Here’s a provocative thought: what if ‘extend and pretend’ within our nation’s troubled mortgage markets is actually providing a lift to consumer spending? It’s not as far-fetched as the idea might initially sound, and it might help explain some interesting data we’ve seen as of late — and it also might explain why the statistical recovery we’re seeing now doesn’t really feel like a recovery to most Americans.

[source: Housing Wire] http://www.housingwire.com/2010/04/05/f ... age-drops/

We’re talking about roughly 7.4 million loans that are considered ‘non-current.’ That’s a lot of money hitting the economy that otherwise wouldn’t be if homeowners were making their monthly payments:

you better wake the hell up America ... actually I believe too much damage was done to have any sort of effect now ...

I like many others are getting ready for a white knuckle ride would be more like it