Despite gloom, Bernanke says recession may end in 2009
 

Honestly, what plant is this guy on?

Maybe he thinks if we just print MORE money it will fix the fact that we don't have any money.

http://news.yahoo.com/s/ap/20090224/ap_on_bi_ge/economy

hes supposed to be the foremost expert on depressions and recessions, i dont think he knows what the fuck hes talking about to be honest or hes just fluffing the public because they dont want riots if it gets worse.

The problem is, nobody knows how to fix it. You and I have just as good a shot as they do.

Heh, Bernanke, what a toolbag

I think if they can get credit unfrozen there is a chance if they cant.We are truly fucked.

Heh, DJ The Kid, what a toolbag

he's right, it will end in 09, then the depression will start

Yeah some expert. He didnt even know this recession HE CREATED was coming. But every Austrian economist knew.....

Thats about right. There are too many people like Tony404 that think you should live on credit and buy useless things. You know, the same exact fucking thing that got us in this mess. :thumbsup

Dont put words in my fucking mouth I dont put words in yours. If you knew anything about business you would know credit is very important. Its not this childish statement about useless things.What got us in this mess was greed and little to no regulation.

Running business on credit is useless! Why do you think we are in this mess? You claim its because people cant get loans and greed. Thats right they cant because if they could it would cause massive hyper inflation. The amount of loans we need to "keep business running" will cause hyperinflation. Why? Because too many business are running on credit and the fed created to much money.

I think you would be shocked if you found out exactly how many businesses, many of them big fortune 500 businesses, would go under without regular lines of short term credit.

I'm so fucking sick of these people.

Short term credit is a tool used. They aren't running it on credit. A personal agency has to pay its people every friday but bills net 30. They get short term credit for that.A music store most of the instruments on the walls are on a credit floor plan, again short term credit. People dont buys car for cash they need loans to do that. No loans no cars bought.

It would not surprise me. What I am saying is that is the problem.

Thank you be it right or wrong. It is a major part of business. Not some guy trying to buy a wide screen tv.

No shit really? And what kinda of business plans has that brought us to? :1orglaugh

You go ahead and beg to the bank to keep your business, your house and your car. I know of a better way.

I dont have to beg to anyone. Just a FYI your business depends on credit card transactions.

I will agree on some level. For example, if you take out a ton of loans and have a business plan that doesn't include a way to get out of debt and stay liquid it may not be a good idea to start that business or continue that business. But there are a lot of businesses that get opportunities and they need credit to take advantage of it.

Take this as an example. Long ago I worked for a company that used to make raw circuit boards then they put components in them and tested them to make sure they worked. They got an opportunity to get a huge contract. This contract would bring them a large amount of income and could take them to the next level. The problem was to do this contract they were going to need about 4 million dollars in credit. They had to buy a couple new pieces of equipment plus they had to hire some new people, train them and then buy the raw materials to get the ball rolling. All of this would have to come out of their pockets before they delivered anything and started to get paid. They got the credit, bought the gear and started the contract and it helped the company grow. Without short term credit they would not have been able to get the stuff they needed and they would have had to turn the contract down. To me this is a wise use of credit and it allowed these people to take their business from being a small company that had about 40 employees to being a bigger company with about 120 employees and about five times the revenue.

Another example would be many other manufacturing companies. They get contracts and have to pay for the materials and labor up front. Some times it can take anywhere from 30-120 days before they get paid for the finished product. It it takes them 2 months finish the contract it could them be 90-180 days before they get money coming in from it from the day they started it. So they maintain a line of short term credit to pay their bills while they complete the contract and get paid. Once they get paid they pay off the credit. In a perfect world it would be best if they had the money to fulfill the contract up front and didn't have to get a line of credit, but in the real world that is pretty rare. Having the line of credit allows them pursue contracts that might take longer to fill, but will pay them more in the end.

Didn't he already try everything and amazingly it DIDNt work? Now it's time to fleece the public, because well... there isn't anything left to do but wait it out.

What a fuckwit.

Much of the problem we are facing now is that people are getting credit they can't pay back then other people are selling the contracts for that credit. The people that are buying those contracts then split them up and include them in investment portfolios and other investment tools. So you end up with an entire like of people investing in - and making money off of - a credit contract that will eventually go bad. Then when it goes bad you find out the hard product (in this case a house) that the credit contract was drawn on is only worth 75% of what it was when the contract was signed so seizing and selling the house will not pay back the load and everyone upstream who gambles on that credit being payed back gets screwed.

A business taking out a short term loan to cover the cost of a new contract didn't cause this. Companies selling credit default swaps and mass buying and selling mortgages that were tainted did ( well, at least they were a major part of it)

The economy will start to turn around in about a year, I agree with that.

I would say as much as 30% of the slowdown is caused by people overreacting to the bad news they heard 20 times a day.

I've been reading and watching the news since I was pretty young (I was a weird kid) and I've never experienced anything like the past 3 months. The shear amount of doom and gloom is TOTALLY unprecedented.

Don't forget, and this is very important, the economy didn't just start getting bad this past fall as the news would have you believe, it has been going downhill for several years which means we are approaching the end. This is NOT the beginning.

I agree the media does feed the fire. I know people that have jobs that aren't going anywhere and all of a sudden they are afraid to spend like they used too or go on vacation. One friend said to me my job isnt going anywhere and I make a good living but watching the news scares the shit out of me. So instead of going out with his wife a couple times a week now its once a month.Enough people do that it has an effect.

Agreed.

2010 at the soonest.

I agree. I read that around 75% of the strength of our economy is based on consumer spending. Right now people are shitting their pants and even those with steady jobs are scared and not spending money. Eventually people will have to spend money. Their car will break down or wear out and they will trade it in for a new one or they will need a new washer or dryer and I think eventually people will start to let the fear die off and they will buy things again and stuff will start to pick up.

They talk about all this shit but two weeks ago im at microcenter and there is a line you would think its xmas. I go to the apple store its full of people. My brother had to go florida for last minute business trip he had to go to 5 hotels to find one with a room available. its weird its not like everything is empty like the way you hear them talk.

You guys are funny.

We just print more money to cover our debts and payout for stimulus packages. HOW do you think this is going to fix anything when in fact it is devaluing the currency? Regardless of what you *think* will happen, the facts are the facts and this is a very important one. Unless they start backing the USD by gold again, the currency may be fucked.

"Hyperinflation" I believe is the proper word to use for what is going on right now.

We dont have Hyperinflation no 500 billion dollar bills like some third world country currency or people carrying barrels of money. Its more panic that feeds the fire. Actually we are borrowing not printing.