Bernanke says recession could end in 2009 SMF Economy Speical

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SMF is telling people we have been down the road before with these people in 2008.

Even right now there is more that needs to be done that meets the eye and we are telling people how to buy stocks based on taking the news higher.

However, the markets are going to be range bound and at SMF we are experts dealing with how the L-Shaped recover would take place as we have been teaching investors and traders how to gage the economic indicators using our SMF Economic Ratio Analysis System.

Our system has indicated the slower growth that StockMarketFundig.com believes is here to stay and we need to worry about inflation coming next year and how that super highway to inflation will damper our financial system in the months to come.

Every bear market or bear economy will get periods of stabilization, however there needs to be the strong reality check of slower growth and how the de-leveraging process has worked through out the world.

We need to be very cautious and get more data that would give all of us a much clearer economic picture.

Our banking system has a lot to do and there are always going to be new hidden scams that are still in our system that will surface.

We understand that there is a lot more to come out that we have not seen and our views are at StockMaketFunding.com is how do you make money in these markets?

SMF has a Stock Market School that address all the key areas of investors and traders need to learn.

There are to many variables that do not have the clarity in our view at SMF and once the shoe drops then we will be faced with new problems.

StockMakretFunding.com remains very cautious on the economy. Lending has not got into our current economy in order to grow you have to lend so that small business can come up and start doing business at slower growth and hire new people and we have a new era on our hands that is starting right now and there is a longer time process before anyone can get excited.

The loan process in America is still at jeopardy and our prior debt is far from being resolved, Mario Marciano is telling investors and traders at StockMarketFunding.com that house hold debt is at levels we have never seen before.

SMF is telling all people we need to address and deal with the facts. SMF is telling people the consumer confidence levels and savings accounts are devastated.

America is at the heels of deleveraging in our system and our current stimulus plans and not good how long would they last? Stay tuned at SMF we will be happy to guide you properly. SMF will be doing many specials on the economy moving forward, StockMarketFunding.com understands the Bear Market better than most people will ever understand it, lets call the truth what it is if they really did understand it America would not be were we are today.

SMF understands that consummation, housing prices, retail spending, let’s face the truth our financial system needs just more than a Band-Aid it needs truth and correct management to the overall money supply moving forward in our economy.

SMF warns people not to get irrationally exuberant and to get education from SMF to understand and sort out the truth so you can better gage and understand the world you live in and not just living in the world.

America's recession "probably" will end this year if the government succeeds in bolstering the banking system, Federal Reserve Chairman Ben Bernanke said Sunday in a rare television interview. In carefully hedged remarks in a taped interview with CBS' "60 Minutes"

Bernanke seemed to express a bit more optimism that this could be done. In carefully hedged remarks in a taped interview with CBS' "60 Minutes," Bernanke seemed to express a bit more optimism that this could be done.

Still, Bernanke stressed - as he did to Congress last month - that the prospects for the recession ending this year and a recovery taking root next year hinge on a difficult task: getting banks to lend more freely again and getting the financial markets to work more normally. "We've seen some progress in the financial markets, absolutely," Bernanke said.

"But until we get that stabilized and working normally, we're not going to see recovery. "But we do have a plan. We're working on it. And, I do think that we will get it stabilized, and we'll see the recession coming to an end probably this year."

Even if the recession, which began in December 2007, ends this year, the unemployment rate will keep climbing past the current quarter-century high of 8.1 percent, Bernanke said. A growing number of economists think the jobless rate will hit 10 percent by the end of this year.

Asked about the biggest potential dangers now, Bernanke suggested a lack of "political will" to solve the financial crisis. He said, though, that the United States has averted the risk of plunging into a depression.

"I think we've gotten past that," he said. It's rare for a sitting Fed chief to grant an interview, whether for broadcast or print. Bernanke said he chose to do so because it's an "extraordinary time" for the country, and it gave him a chance to speak directly to the American public.(A transcript of the interview was provided in advance of the broadcast.) Bernanke spoke at a time of rising public anger over financial bailouts using taxpayer money.

Battling the worst financial crisis since the 1930s, the government has put hundreds of billions of those dollars at risk to prop up troubled institutions and stabilize the banking system. Institutions that have been thrown lifelines include American International Group Inc., Citigroup Inc., Bank of America Corp., mortgage giants Fannie Mae and Freddie Mac and others.

Democrats and Republicans on Capitol Hill have questioned the effectiveness of the rescue efforts and have demanded more information about how taxpayers' money is being used. Bernanke's TV interview seemed to be part of a government public relations offensive. Treasury Secretary Timothy Geithner appeared on PBS'

"The Charlie Rose Show" last week, discussing the financial crisis and the Obama's administration's relief efforts. The Fed chief on Sunday's broadcast repeated his ire over the AIG bailout, saying that over the past 18 months, that was the case that angered him the most. He says he "slammed the phone more than a few times on discussing AIG."

The government's four efforts to save the troubled insurance giant total more than $170 billion. A collapse of AIG would have wreaked havoc on the global economy, the Fed has said. AIG ignited fresh outrage over the weekend with news that it's making $165 million in bonus payments to executives on Sunday, most of them in the unit that sold risky financial contracts that caused huge losses for AIG.

When the financial crisis intensified last fall, Bernanke and President George W. Bush's Treasury Secretary Henry Paulson rushed to Capitol Hill for help. That led to the swift enactment of a $700 billion bailout package in October.

Since then, banks have received billions in capital injections in return for government ownership stakes in them. Looking back, Bernanke said the world came close to a financial meltdown.

Asked how close, Bernanke responded: "It was very close." Bernanke admitted that the Fed could have done a better job of overseeing banks. Critics say lax regulatory oversight contributed to the crisis.

Bernanke said he believes all the big banks the Fed regulates are solvent. Big banks won't fail under his watch, Bernanke said - though, if necessary, the government should try to "wind it down in a safe way."

Prepare yourself for the "New Economy"

Posted: 3/16/2009 7:33:38 AM by StockMarketFunding | with 0 comments

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