Bernanke On The Recession.
WASHINGTON (AFP) – Federal Reserve chairman Ben Bernanke said Monday the current economic situation bears "no comparison" to the much deeper crisis of the 1930s Great Depression.
"Well, you hear a lot of loose talk, but let me just ... say, as a scholar of the Great Depression -- and I've written books about the Depression and been very interested in this since I was in graduate school, there's no comparison," Bernanke said in a question period after an address in Austin, Texas.
Bernanke cited "an order-of-magnitude difference" in the current situation compared to the 1930s.
"During the 1930s, there was a worldwide depression that lasted for about 12 years and was only ended by a world war," he said.
"During that time, the unemployment rate went to 25 percent, at least, based on the data that we have. The real GDP (gross domestic product) fell by one-third. About a third of all of the banks failed. The stock market fell 90 percent."
I have stressed some of this information before. Plus, anyone that can read credible history texts can understand the differences, those that lived through it can speak it from experience.
I am not saying things aren't that bad. They are. I am not saying things cannot get this bad. They can. And they still might.
But let's step back take a breath here for a moment. Bernanke only touches on this but it's enough to cause a person to think, unemployment could have been higher because of obsolete methods of record keeping. When you factor in the GDP falling by a third and stocks falling by 90%, how can anyone believe this recession is at the same level?
Yet, some are content to make this sound worse than it is, for political gain. Their goal? To paint the worst possible picture, so that when the markets recover, they can claim credit. Basically, I am still waiting for anyone to prove that government intervention is an effective method of controlling the economy with it being central planning. Because in a free market economy, the word that stands out most, is the word "free".
Greg brought this video to our attention:
ALEX WITT: You know, John, and it’s interesting because there are many who had such an optimstic and hopeful opinion of things, and you certainly can’t expect things to change [snaps fingers] on a dime overnight, but there are many who suggested that with the outgoing Bush administration and the incoming Obama administration there would be something of a lull in terrorism attacks. There had been such a global outpouring of affection, respect, hope, with the new administration coming in, that precisely these kinds of attacks, it was thought — at least hoped — would be dampered down. But in this case it looks like Barack Obama is getting a preview of things to come.
Now let's see a show of hands here, how many people with an ounce of sense cannot understand why it is to the terrorists' advantage to test the strength of the transition? Anyone that knows anything about this kind of thing, knows well and good that the time to hit is when the target's security is at its weakest. Alex Witt must not have an ounce of sense.