Bernanke says that the recession is over but there are still problems with the financial system
19 Sep
The president of the Federal Reserve(Fed),Ben Bernanke,pointed last Tuesday that from a technical point of view, the recession in USA is ”provably over”.However, has also pointed that the US recovery will be ”relatively slow in the beginning and unemployment will only decrease gradually”.
”I’ve seen some agreement in the forecasts of recovery from the community of analysts.But the general opinion of the most of us is that the economic growth in 2010 will be moderate”.added.
Bernanke also asked to put ”urgent” actions to overlook the ‘’structural” weaknesses is holding nowadays the financial system.
”We must urgently approach the structural weaknesses of the financial system, particularly in the regulatory frame, to ensure we do not suffer again the enormous costs of the lasts years
The president Obama has also the same opinion about the necessity of ”urgent” measures in the financial system to prevent a new crisis of the current to happen.”
In his speech in the Brookings Bernanke Institution has rated positively the intervention of financial regulators in September 08, after the Lehman Brothers bankrupt. According Bernanke, the fast performance of these organisms served to reach the stabilization of the global economy which was close to the collapse.
From this point of view,Bernanke has admitted that,nowadays, the fear to a landslide of the financial system is lower and the economic activity is stabilizing.
According Bernanke, after a ”drastical” contraction of the economy, the recession of the United Startes and the rest of the world has apparently touched the bottom and
the perspectives of a return to the economic growth seem good.
However, Bernanke warned that the financial conditions continue under ”high pressure”.
There is still stress in a lot of markets all over the world,financial institutions are affording significative additional loses and a lot of companies and homes continue experimenting a considerable difficulty to obtain credit” pointed Bernanke.
Geithner: ”we’re still recovering”
Coinciding With the Bernanke’s speech in Washington, The president of the treasure,Tim Geithner, assured in an interview from ABC that the current economic situation in the US is ”completely different” than a year ago. However,also pointed that there is still to early to affirm that the economy is recovering.
”I would not say that we are already recovering.We define recovery(…)as the moment when people comes back to work, when people is able to find job again,when business are investing on (..) and we haven’t still reached that point”
said Geithner.
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