July 17th, 2013

Ben Bernanke-Why He Says We Have a Way to Go!

Did you hear the latest statement from Ben Bernanke? Whether you keep up with the news on the radio, TV, or the online paper, you probably heard that the Chairman of the Federal Reserve sees that we have quite a way to go before we make progress in the economy.

While Congress may have believed that a bond-buying program was ideal to spur the economy forward, Bernanke doesn’t believe that this is enough to stimulate the economy enough to change anything. A rise on the interest rates is something that many have predicted and even waited for, although we haven’t seen it yet.

Why would we as a country want to see low short-term interest rates? You would simply hear Ben Bernanke state that the reason for this is simple; he said and I quote, “At least until the 7.6% unemployment rate falls to 6.5%.”

What happens now? Today, I’d like to share with you what we can expect to see in the near future, perhaps what Bernanke wants to propose as a long-term solution, and how you can prepare financially for you and your family.

Ben BernankeReflecting on the Words of Ben Bernanke

Once Ben Bernanke made his statement this morning, the benchmark stock indices were up. They were selling, and now it’s a waiting game. According to the Fed, the unemployment rate falling just isn’t enough for them to wait on doing anything.

Arguments will always abound as to why we have the unemployment rate we have now. While some still cannot find work, there are some individuals taking on work in minimum wage positions but it’s not enough to take care of their bills. Thus, many families are still in a position of focusing on feeding their kids and doing nothing more as a result.

The argument on the numbers comes with a bold statement that the Fed wouldn’t raise the short-term interest rates if it was discovered that people had stopped looking for jobs. This comes on the heels of what sounds like a confident belief that this is actually true.

So, what is the Fed doing these days? They are:

  1. Spending $85 billion a month in treasury bonds and mortgage backed securities
  2. Expecting purchases to be pared back as of September

According to Bernanke, this can continue even if the economy struggles as budget cuts are made. Do you feel that this is over confident? His statement that followed was confusing for many, in that he says that this depends on the financial development of the country.

Isn’t that a little more than just forward thinking? Perhaps it was a bit overzealous, and if the dollar fails soon, which we have all been waiting for, isn’t it a bit over the top?

Barclays Capital Predicts Actions of Ben Bernanke?

The oddest statement so far, is that made by Barclays Capital, in that they predicted a reduction of bond buying down to $70 million a month. Isn’t that interesting? I mean, do you see any other banking institutions weighing in on Bernanke’s announcements?

While Bernanke says that the economy is moving at a steady pace, and that the housing market is making a rebound, I am scratching my head along with many of you. I am not saying I am right, but it seems that there are so many around me that still cannot find work in the two years’ time that they have been looking.

While budget cuts are still being made, and Ben Bernanke continues to make changes, you should GO HERE NOW, to learn more about how to prepare  for the future.

Comments

comments

Tags: , ,


Fatal error: Uncaught Exception: 12: REST API is deprecated for versions v2.1 and higher (12) thrown in /home4/jb007/public_html/yoursecondyouthblog.com/wp-content/plugins/seo-facebook-comments/facebook/base_facebook.php on line 1273