Bernanke Admits Economic Woes Could Last Into Next Year
- Posted on June 22, 2011 at 3:30pm by
Jonathon M. Seidl
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WASHINGTON (The Blaze/AP) — Federal Reserve Chairman Ben Bernanke says some of the problems that are slowing the U.S. economy could persist into next year.
Bernanke said at a news conference Wednesday that the slowdown could be due, in part, to the depressed housing market and other factors that aren’t likely to fade soon.
“Maybe some of the headwinds that are concerning us, like the weakness in the financial sector, problems in the housing sector – some may be stronger and more persistent than we thought,” he said.
Bernanke described the debt crisis in Greece as a “very difficult situation.” He said that if Greece defaulted on its debt, the impact would go beyond Europe and threaten the global economy.
In answer to another question, Bernanke said the impact on financial institutions would likely be “very small.” But he said a spiraling Greek debt crisis that roiled financial markets would pose more severe threats.
The Fed chairman made the comments at his second news conference of the year. Under a new Fed policy, he plans to take questions from reporters four times each year.
Bernanke was asked about the potential timetable for the Fed to keep its main interest rate near zero for “an extended period” to stimulate the economy. He said the continued use of “extended period” in the Fed’s statements meant it is at least two or three meetings away from raising rates. The Fed meets every six to eight weeks.
Most private economists say they think the Fed won’t begin raising rates for another full year.
Additionally, the Fed lowered its estimates for U.S. economic growth, which in turn caused Stocks to fall in afternoon trading Wednesday.
The Dow Jones industrial average dropped 30 points to 12,158. The Standard & Poor’s 500 index fell 2 points to 1,293. The Nasdaq fell 6 points to 2,681.
The Federal Reserve left interest rates unchanged at the end of its two-day meeting Wednesday. In an updated forecast, the Fed now estimates the economy will grow between 2.7 percent and 2.9 percent this year. That’s down from the previous estimate of 3.1 percent to 3.3 percent estimate made after its last meeting in April.
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Comments (121)
slvrserfr
Posted on June 22, 2011 at 4:57pmMarkets tanked during this speech, just as predicted. Market manipulation is alive and well on Fraud Street.
Report Post »mrsmileyface
Posted on June 22, 2011 at 8:28pmSooooo…………..Are you better off now than you were 4 years ago? Im Mr Smiley Face and Im running for President of the United States of America. And I approve of this message.
Report Post »marklross
Posted on June 22, 2011 at 4:55pmWhat does FED chair Bernanke have to say about this? find out here: http://youtu.be/WehJJvPw7ag
Report Post »Seneca264
Posted on June 22, 2011 at 4:54pmDid we really need this stupid Jew to tell us that we are economically screwed…..really? It will be more than a year before we recover from this.
Report Post »temple62
Posted on June 22, 2011 at 4:40pmOne of the questions at the next GOP candidate debate should be: Do you intend to have Paulson, Bernanke or Geithner in a position with your administration?
Report Post »frustratedwithgovt
Posted on June 22, 2011 at 4:35pmThe Fed needs to go. It may be hard to unwind its tentacles and there maybe no political will to do it but it needs to go. Read up on the Mandrake Mechanism.
BTW – there are only two types of forecasters. Those that don‘t know and those that don’t know they don’t know….
Report Post »boca_chica
Posted on June 22, 2011 at 4:29pmHe’s just another goldman-sachs punk. We’re sending billions overseas for products that used to be made here and billions overseas for energy that we have available here( to drill a well takes 10 years and 2 months-the 10 for permits-even though we’ve been drilling in the U.S. for a hundred years with minimal incidents). We have the best-up-to-date nuclear tech and don’t use it. Remember when the government helped defray fusion tech? I havent heard much about it lately. A country becomes wealthy by extrcting resources and turning them into products and selling them to those in-country and overseas. If you don’t have manufactured products to sell, you have no employment.
Report Post »elosogrande
Posted on June 22, 2011 at 4:26pmGee – ya think?
Another bozo always touted as being“the smartest guy in the room”. What crap!
The devotted ones continue to say the same thing about Obama, Geithner, Biden, Schumer, etc.
B– S—! – All over educated buffoons, who all had a Mother, father, or some idiot relative, constantly telling them how smart they were as children.
Report Post »UpstateNYConservative
Posted on June 22, 2011 at 4:20pmThings slowing the economy:
Obama
Congress
Democrats
RINOs
Gross overspending at all levels of government
Ludicrous taxes
Over-regulation
Obamacare
Entitlements (food stamps are advertised on buses up here)
Waste
Fraud
Corruption (Party affiliation not a factor)
Graft
Corporate welfare (Planned Parenthood all the way to Chase Bank)
Cronyism
Did I miss anything?
Report Post »Glenn is my hero
Posted on June 22, 2011 at 8:09pm@UPSTATENYCONSERVATIVE
you forgot the blood sucking illegals!!!
Report Post »91AP
Posted on June 24, 2011 at 9:16pmThe banksters.
Report Post »ModerationIsBest
Posted on June 22, 2011 at 4:20pmEveryone say it with me, “Recovery!”
Report Post »swampbuck
Posted on June 22, 2011 at 4:19pmEverything is going as planned…
Report Post »riseandshine
Posted on June 22, 2011 at 4:16pmBen Bernanke always looks like he’s trying to keep a straight face…I don’t trust him…especially considering who appointed him….now he’s backed by the current criminal-in-chief.
Report Post »Mil-Dot
Posted on June 22, 2011 at 4:31pmI know what you mean. I call those guys with perpetual smirks on their faces “smiling, laughing, joking around man”. Real cute huh?
Report Post »macombman
Posted on June 22, 2011 at 4:11pmHe gave a rather important speech today. Here it is if you’re interested.
Report Post »http://www.youtube.com/watch?v=ZN1sEnlptnw
moreteaplease
Posted on June 22, 2011 at 4:08pmWhy don’t they stop tap dancing around this and just admit what we already know? This thing is going to be around for long time.
Or could it be that this prophetic message from Ben is being put out there to purposely depress the economy even further? I wouldn’t put it pass this administration to have another wild trick up their sleeve.
Report Post »chuck_wagon
Posted on June 22, 2011 at 4:05pm2012, just keep telling yourself 2012, 2012, 2012 and the nightmare will be over 2012,2012……
Report Post »ModerationIsBest
Posted on June 22, 2011 at 4:21pmKeep telling yourself that Chuck. 2012 will be no different then 2008 which is no different then 2004.
Report Post »CatB
Posted on June 22, 2011 at 4:26pmTEA!
c
Report Post »CatB
Posted on June 22, 2011 at 4:43pm@MODERATE
There IS a difference …. TEA!
Report Post »h20sue
Posted on June 22, 2011 at 4:02pmPS: I’d like to know where the 10K men and women who are heading back to the USA from the mid east are planning to work? I’d like to know what Obama has planned for those folks… Is Obama going to hire them? Will they end up on welfare like many other folks that are unable to find work?
Shame Eisenhower and Truman aren’t still with us, as they knew how to gather the illegals and move them back to their motherlands so “our American troops” would have JOBS!!!!!
Report Post »Mil-Dot
Posted on June 22, 2011 at 4:30pmThey will be given plush govt jobs protecting the goons in Wash DC. With full benefits and a plush retirement plan. All on our dime. But, only the prog KoolAid drinkers need apply for those jobs.
Report Post »h20sue
Posted on June 22, 2011 at 3:58pmOh, good grief! This man is making big bucks and the American people knew this without his involvment! All you have to do is open your eyes, stop listening to CBS, NBC, and ABC, and you’ll get a great deal more education about the economy! The only people who are being fooled are some of the elderly as they believe everything they hear on MSNBC, CNN, and three main media channels.
Report Post »Those who are smart enough to turn on Fox News, read The Blaze, listen to Rush or Glenn, have sense to know “there will be no improvement in the economy until the Obama’s are out of the Whitehouse.”
nomercy63
Posted on June 22, 2011 at 3:58pmI wish my bank would let me keep my check book like they keep theirs!!!!
Report Post »Obama_Sham
Posted on June 22, 2011 at 3:48pmThanks for letting us know Uncle Ben… Love ya, man…
/sarcasm
Report Post »Gonzo
Posted on June 22, 2011 at 3:45pmGosh Ben, you’re like the Amazing Kreskin. Who would have ever seen that coming?
Report Post »capecodsully
Posted on June 22, 2011 at 3:43pmEveryone in business knows that the economy isn’t going to improve until November 2012, when Obama is voted out.
Report Post »True American66
Posted on June 22, 2011 at 3:57pmExactly….
Report Post »CatB
Posted on June 22, 2011 at 4:19pmI agree ..
TEA!
Report Post »conservativeBC
Posted on June 22, 2011 at 3:41pmWARNING: One Illegal Alien Has Caused The Extinction All Marine Life!!
http://conservativeblogscentral.blogspot.com/2011/06/warning-one-illegal-alien-has-caused.html
Report Post »FaithfulFriend
Posted on June 22, 2011 at 3:40pmUnfortunately, this time, thanks to spanks like this… it‘s not over till it’s really over.
Report Post »REETZBEE
Posted on June 22, 2011 at 3:38pmWho the hell would believe anything he says. He should be in jail.
Report Post »CatB
Posted on June 22, 2011 at 4:17pmI agree .. time we started holding the CROOKS accountable for the disaster and damage they have caused …
TEA!
Report Post »RN MOM
Posted on June 22, 2011 at 4:59pmI’m sorry, but why are we taking this from a bank? I don’t care what they name themselves, they are still a bank. Not one of the people who a paving our policy in this bank are elected by us. They suck, The contract with this bank needs to be cancelled by our government.
Report Post »flsnipe
Posted on June 22, 2011 at 3:38pmNo Shxx who doeesn’t know this but your Boss AH.
Report Post »SpankDaMonkey
Posted on June 22, 2011 at 3:48pm.
Report Post »I bet his brain Rattles around in his head, like a BB in a box car……….
SpankDaMonkey
Posted on June 22, 2011 at 3:52pm.
Report Post »I think the dead dog I saw this morning might not know….
vennoye
Posted on June 22, 2011 at 4:27pmNO joke Sherlock!! Public officials need to have required IQ tests!!
Report Post »Susan Harkins
Posted on June 22, 2011 at 3:32pmHey Bernankles,
I guess you would be safe to include 1 year foward — IN A MASSIVE 20-YEAR GLOBAL DEPRESSION.
Nice conservative projection there.
Report Post »SavingtheRepublic.com
Posted on June 22, 2011 at 3:38pm^____^____^
Next year ya think…. try next decade genius! Im coming to the realization that the only way for this country to turn around is for a collapse and complete restart. We ARE IN a depression, the powers that be are afraid to say b/c they are not ready to deal with US streets mimicking Greece etc! I do not believe based on what I am seeing and hearing things can be fixed. There is way too much corruption from the local to fed level. You weed out some bad seeds in one part and there are 100x more in another area. The longer the news unfolds as to what is going on the worse it gets
Im a realist like Glenn, “hope” for the best but am preparing for the worst.
http://www.youtube.com/watch?v=C1zkGZRfj24
Report Post »Sandy
Posted on June 22, 2011 at 3:39pmThe Fed is so afraid to allow the market to trade freely. They have purchased over 70% of everything. They know if they stop, the largest bubble ever will pop!! True fear of market going next to zero.
Report Post »cheezwhiz
Posted on June 22, 2011 at 3:39pmAll these sooper mega intelligent intellectual giants Ivy Leaguers in DC and NY and LA and NONE of them can solve this problem, although they said they could , exclusively !!
Report Post »How about letting Americans with common sense take over ?
fastfacts
Posted on June 22, 2011 at 3:44pmIT’S WORSE THAN THAT BERNANKE: ( http://tiny.cc/tdmkz )
- CBO: Stimulus almost doubled U.S. debt
Report Post »- CBO: By 2021 debt would reach 101% of GDP
- CBO Releases Daunting Long-Term Outlook
- CBO: ObamaCare is “Unsustainable”
- CBO: Federal Debt to Hit 70% of GDP This Year
JRook
Posted on June 22, 2011 at 3:44pmAdmits….., what you think he was trying to hide it or that anyone paying attention doesn’t realize what the data is saying.
Report Post »CatB
Posted on June 22, 2011 at 3:46pmWhat an idiot … one year? He and the socialist/marxists in the White House have spent our children and their children into slavery with record spending and debt. The only way to get out of this is for the ADULTS to take over and cut cut cut … 2012 end of an error.
TEA!
Obama depression is reality.
Report Post »Anonymous T. Irrelevant
Posted on June 22, 2011 at 3:49pmOne year, really? Is it because you and your puppet master don’t have a clue as to what you are doing? Having a bad economy can only mean good things for a Republican candidiate and no one else.
Report Post »Eric_The_Red_State
Posted on June 22, 2011 at 3:53pmWho gave this bozo keys to the car?
Report Post »Someone put him in the back seat in a booster chair.
True American66
Posted on June 22, 2011 at 3:54pmFederal Reserve Chairman Ben Bernanke says some of the problems that are slowing the U.S. economy could persist into next year.
…..you don’t say………no, really…..you don’t say…..
Report Post »Eric_The_Red_State
Posted on June 22, 2011 at 3:55pmActually – this is a good thing.
Report Post »I hope they last AT LEAST up until the 2012 elections.
THAT way Obama wouldn’t be able to get elected to the head of the local water bureau
poorrichardsnews
Posted on June 22, 2011 at 3:56pmSo much for the “Summer of Recovery.” Here we are one year later… http://poorrichardsnews.com/post/6794403194/obamas-economy-1-year-after-the-summer-of-recovery
Report Post »Gold Coin & Economic News
Posted on June 22, 2011 at 4:05pm“Maybe some of the headwinds that are concerning us, like the weakness in the financial sector, problems in the housing sector – some may be stronger and more persistent than we thought,”
1.5 million homes in foreclosure is a headwind? WTF? I live down here in Florida and we call a wind like that a hurricane, Benske.
Report Post »cheezwhiz
Posted on June 22, 2011 at 4:06pmBernanke described the debt crisis in Greece as a “very difficult situation.” He said that if Greece defaulted on its debt, the impact would go beyond Europe and threaten the global economy.
Report Post »————–
OMG !!This guy is a genius ..who could have seen that coming just a few years ago …maybe a goofy teddy bear…but who else ??Hmmmmm:D
Snowleopard {gallery of cat folks}
Posted on June 22, 2011 at 4:10pmSo Bernanke now admits there may be some difficulties coming up into next year? Just love those old time Kenesyan style economic formulas the progressives keep using, and that always just keep right on failing no matter how much they spend and wreck economy after economy while failing to put the blame right where it belongs – on the truth of SOCIALISM NOT WORKING!!!
Only a true, free and capitlist nation is able to make prosperity happen and enjoy it at the same time.
Report Post »chalkdust
Posted on June 22, 2011 at 4:15pmObi Wan: “We don’t know exactly whats causing the slow growth”(quote not in this article).
Report Post »You don’t know? Really? He mentions Greece and Japan as “possible” factors. How about high gas prices Ben? Rising food cost? Devaluation of the dollar, maybe? Interest rates? Nope can’t be true. Its all outside factors that Obi Wan has no control over.
NetGear
Posted on June 22, 2011 at 4:17pmThese people are dangerous. Words cannot describe my disgust and contempt for all of these people who have played a part in trashing America.
Report Post »Mil-Dot
Posted on June 22, 2011 at 4:22pm@ Savingtherepublic
Report Post »You are absolutely correct. This mess is not going to get fixed until DC is burned to the ground.
13th Imam
Posted on June 22, 2011 at 4:24pmI personally would like to thank
Report Post »Chris Dodd and Bawney Fwank
These two criminals are leading causes for the housing market depression.
Showtime
Posted on June 22, 2011 at 4:26pm@cheezwhiz
Report Post »Posted on June 22, 2011 at 3:39pm
All these sooper mega intelligent intellectual giants Ivy Leaguers in DC and NY and LA and NONE of them can solve this problem, although they said they could , exclusively !!
How about letting Americans with common sense take over ?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Can’t do that, Cheez! That would be the logical thing to do.
Will send you a copy of what I just tore into Chambliss and Isakson with.
NJTMATO
Posted on June 22, 2011 at 4:27pm@savingtherepublic
Report Post »Right there with you! Corruption, self interested elitists, etc…AT LEAST ten years!!! I think we do need to hit the reset button!! I am, however, hoping for the best but am prepared for the worst…still preparing and spreading the word so that others will prepare themselves. That’s the best we can do, for now.
V-MAN MACE
Posted on June 22, 2011 at 4:34pmBernanke is a LIAR.
Ask Herman Cain, Former Fed chairman, why we should listen to ANTHING this lizard Bernanke says…
Why ask Cain? Simple. He suggested we ask them as if they’re not going to lie to us.
http://www.youtube.com/watch?v=caeNXivEGEg
Ron Paul 2012. END THE FED 2012.
Report Post »LibertariansUnite
Posted on June 22, 2011 at 7:26pmI wish Bernanke would come out and say:
“Keynes was wrong, Hayek and Mises were correct, I am a failure.”
Report Post »hud
Posted on June 23, 2011 at 11:48amIn a totally clueless administration, is the “b” man the most clueless of them all, or what?
Report Post »Finger Follie
Posted on June 23, 2011 at 4:03pm“Federal Reserve Chairman Ben Bernanke says some of the problems that are slowing the U.S. economy could persist into next year.”
One word, DUH!
Report Post »BoiseBaked
Posted on June 24, 2011 at 10:31amOne word: DUH!
Report Post »91AP
Posted on June 24, 2011 at 9:09pmOsama bin Bernanke?
Report Post »