* Bernanke: Record-low rates still needed to foster recovery ~ explains

[sushigirl]

In other words, we will continue to use your savings for free. Count your
blessings that we don't charge you for keeping your money at our bank.

Exit Strategy

1 hour, 38 minutes ago

By Jeannine Aversa, The Associated Press

WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress Wednesday that record-low interest rates are still needed to ensure that the U.S. economic recovery will last and to help cushion the sting of high unemployment.

In prepared remarks for his twice-a-year report to the House Financial Services Committee, Bernanke struck a confident tone that the recovery should endure. But he also sought to tamp down expectations.

The moderate economic growth the Fed expects will lead to only a slow decline in the country's nearly double-digit unemployment rate, he said.

He offered no new clues about the timing of an interest rate increase. Most economists think it is months away. Bernanke said rates will need to stay at exceptionally low levels for an extended period "as the expansion matures."

Bernanke is likely to face more pressure than usual from lawmakers in an election year. Their constituents are struggling economically, while bailed-out Wall Street banks are profitable again.

Unemployment stands at 9.7 per cent, home foreclosures are at record highs and individuals and businesses are having trouble getting loans.

The Fed chairman reiterated a pledge that the Fed will keep its main interest rate at an all-time low near zero for an "extended period."

The target range for Fed's main rate, the federal funds rate, has been between zero and 0.25 per cent since December 2008.

Bernanke's comments will be scrutinized around the world by businesses and policymakers, since the state of the U.S. economy has a tremendous impact on other countries.

Like the Fed, the Bank of Canada has lowered its key lending rates for banks to the lowest practical level even though the Canadian banks are widely considered to be in a much stronger condition than their American counterparts.

The Bank of Canada has said it expects to keep its key lending rate at the current level until the summer but there's widespread speculation about when it will begin to tighten credit conditions.

http://ca.news.yahoo.com/s/capress/100224/business/us_bernanke

[Eichmann]

Hmmm, I don't buy it. Just excuses to buy time. The crash is on the horizon, it grows larger by the day. 

[sushigirl]

Hmmm, I don't buy it. Just excuses to buy time. The crash is on the horizon, it grows larger by the day. 

I would like to buy it, but I'm not too optimistic myself.

http://www.freedomportal.net/forum/index.php/topic,1060.msg8319.html#msg8319

[Eichmann]

You'd be crazy to be optimistic. I'm still considering leaving the US. It is not going to be very fun living here under hyperinflation.

[bpocatch2]

Interesting.  Millionaire maybe billionaire TV pundit Jim Rogers says that the "Market" will always beat the stupid "government's
 action.

Look like Rogers is/was wrong. Bernie is inflating away Bush's conquest debt and mortgage looting.

[sushigirl]

You'd be crazy to be optimistic. I'm still considering leaving the US. It is not going to be very fun living here under hyperinflation.

Where would you go?

[bpocatch2]

Where would you go?

Eich is a time traveller 

[EyeBelieve]

Bernie & Timmy are doing the same thing that MSM criticized Japan for doing in the 90s:  useless stimulus w/zero rates & protecting bankrupt banksters.  At least Japan got a couple of new bridges; US east-coast roads have gone from bad to horrible after the snows.

[Eichmann]

Where would you go?
[/quote


Perfect choice would be New Zealand on a thousand acre cattle ranch complete with large under ground bomb shelter.