Thursday, April 3, 2008

Dr. Bernanke Dares to Say the "R-Word"

Yesterday Dr. Ben Bernanke , bowing to the spirit of the times,
mentioned the possibility that we may potentially slip into a recession according to a Reuters article. But other experts, such as Warren Buffett, have been saying this for months.
"Federal Reserve Chairman Ben Bernanke on Wednesday conceded for the first time the U.S. economy may slip into recession, but said growth should pick up later this year as the impact of interest rate cuts and other emergency steps take root."
My own take is the following comment I wrote to a friend on this subject: "I confidently expect that if a Democrat is elected President, the liberal news media will back off and stop mentioning the dreaded "R-word," recession. The basic problems will still be unresolved: reckless mortgage lending, out-of-control government spending, [too much borrowing, not enough saving,] unwise trade policies, etc., complicated by higher taxes and more government interventions in the economic process. By then they won't have Bush to kick around anymore."

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