Tuesday, October 21, 2008

What? Mr. Bernenke, More money?

Shocking though it may seem, the Fed Chair asked congress for more money, stating that consumer confidence was low and that recession and more rocky days for the market were likely....Do you think this is what we need? Just another 450billion to flush our economy ? Cite your source.
http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

Look at his report to Congress in July of this year.

15 comments:

  1. I do not think that more money is the solution, now a days people think that money is the answer for everything. Can't Bernenke see that more money is not going to help our economy. The dollar is already going down in value, pretty soon the dollar will be of no value, it will be the great depression all over again. The government sees the people as no voice, but if all our voices come together, we might be getting a little respect around here. This is supposed to be the greatest country in the world, and yet we can't even come to an agreement on some of the issues. The government does not give the people a choice on the issues. Like Iraq for instance, Bush just declared war on Iraq, without giving the people of the United States a chance to decide if this was the right choice to make for the sake of our Country. The little man has no respect in this country, if you do not have money, you are no one. Bernenke clearly tells Congress that "Inflation has been higher than we had anticipated in February." If inflation is higher than why is the U.S. spending money on things that are not even our business. Oil has gone from 100 dollars a barrel to 75 dollars in the past few weeks. Doesn't this give Government the wake up call is needs to start to get into action concerning the Economy right now. Hello, wake up Congress, time to put in those batteries and get to using those tax dollars, for what they are really meant for, and not for a bailout that does not even seem to be working.

    http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  2. To me, Mr. Bernanke is just another politician who doesn't know what he's doing. If this actually happens and he actually gets the money, our dollar bill will be worth less and our economy will be go down the drain. According to Bernanke, The U.S. economy appears to be in a period of transition. For the past three years or so, economic growth in the United States has been robust. This growth has reflected both the ongoing re-employment of underutilized resources, as the economy recovered from the weakness of earlier in the decade, and the expansion of the economy's underlying productive potential, as determined by such factors as productivity trends and growth of the labor force. Although the rates of resource utilization that the economy can sustain cannot be known with any precision, it is clear that, after several years of above-trend growth, slack in resource utilization has been substantially reduced. As a consequence, a sustainable, non-inflationary expansion is likely to involve a modest reduction in the growth of economic activity from the rapid pace of the past three years to a pace more consistent with the rate of increase in the nation's underlying productive capacity. It bears emphasizing that, because productivity growth seems likely to remain strong, the productive capacity of our economy should expand over the next few years at a rate sufficient to support solid growth in real output. In the last part of that speech that Bernanke gave, I disagree because that won't be able to happen if Bernanke asks for that substantial amount of money.

    http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  3. I do no think that this is a good idea because we are already in debt with the economy and Wall Street people already lost so much of there money. Why would Mr. Bernenke spending another 450 billion dollars would make anything better. "With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke testified.

    http://www.cnsnews.com/public/content/article.aspx?RsrcID=37823

    "Bernanke said the package also should include provisions that would help break through the stubborn credit clog that is playing a major role in the economy's slowdown." But wont that cost more money? It think are are other ways we can fix our economy and the congress people need to think of something like cutting down the war and weapons.

    ReplyDelete
  4. I agree with Lupita; if we keep "dishing out" money the value of our dollar will keep getting lower and lower. I find it really hard to believe that people with such power and so respected because of how high their education is can't see the simplest things. Printing more dollars isn't going to solve our problem. All Berneke is doing is "sweeping the food under the carpet". Yes, you can no longer see the food, but it is still under the carpet, and getting moldy. The longer we wait to fix our economy the worse it is going to get and the harder it is to fix.

    ReplyDelete
  5. I agree with Lupita that more money isn't the answer. If we need another $450 billion to flush our economy, something about the $700 billion bailout plan is going wrong. How can Congress need an additional $450 billion to fix the economy when it already has $700 billion to fix it. Right now, the U.S. isn't looking like the country that many people depict it to be. Mr. Bernenke said "As a consequence, a sustainable, non-inflationary expansion is likely to involve a modest reduction in the growth of economic activity from the rapid pace of the past three years to a pace more consistent with the rate of increase in the nation's underlying productive capacity." This expansion hasn't been sustainable and has caused some inflation. Congress needs to do the job that it said would be done to help solve our failing economy. So far, Congress hasn't done anything that impresses me.

    reference: http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  6. it seems like Bernard Bernenke thinks we are all millionaires. He keeps asking for money from average Americans to help the country. Problem is money will not help us anymore. We are too deep in the hole, Bernenke seems desperate. We need to fix this economic situation soon or we will be in 1930's all over again. We are wasting too much money on it though, we need to make some settlement from other countries and try to stop this crisis globally. Whatever we are doing with these two billion dollar plans, they are not working. Our dollar has lost so much value, it will soon be the worst value globally and that will be so sad. For the country and our reputation. There is some hope though because globally we seem to have some helpful friends. "Globally, output growth appears strong. Growth of the global economy will help support U.S. economic activity by continuing to stimulate demand for our exports of goods and services. One downside of the strength of the global economy, however, is that it has led to significant increases in the demand for crude oil and other primary commodities over the past few years. Together with heightened geopolitical uncertainties and the limited ability of suppliers to expand capacity in the short run, these rising demands have resulted in sharp rises in the prices at which those goods are traded internationally, which in turn has put upward pressure on costs and prices in the United States". It seems like the economy is poised to do good but if it doesn't soon enough, we will have major issues. Bigger than we have now. Stay strong America!

    Source: http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  7. This is insane! No matter how much money is given to Mr. Bernenke it will not fix the economy. He never asks for a certain amount, so he could always ask again for more flooding the world with the American dollar, driving it down further.

    http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  8. Oh come on, More money! They really want to throw more money at the economy! Ugh, is this ever frustrating. Not only do I know have to keep track of my money but the frivolous spending of the government. How much of our money are they going to throw away? This is ludicrous!

    ReplyDelete
  9. Making more money isn’t going to solve any problems in our economy. I agree with Lupita, the dollar will soon have no value if we keep giving out unneeded money. If the dollar has no value it will make our economy very weak and it will fall apart. Our U.S. economy is increasing at an alarming rate which is making it harder and harder for people to find jobs. “Last month the unemployment rate stood at 4.6 percent.” Also the U.S government is not paying close attention to what is going on, if inflation is increasing they should not be putting money into issues that have nothing to do with our economy. “During the first five months of the year, overall inflation as measured by the price index for personal consumption expenditures averaged 4.3 percent at an annual rate.” Bernanke states that, although the U.S. government doesn’t take it into account. The U.S. government should be staying out of other peoples’ business and focus on our problems, they can cut down on costs from war especially. There is only one outcome from getting more money and it is negative.

    http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  10. I definitely agree with Kyle that if we still need $450 billion to fix our economy, then the $700 billion bailout plan is not doing what it was created for. It also seems like the new "flush out economy" plan is just another way to put more money into our corrupt economy to save the "big players". The amount of money our country is giving out is unbelievable especially when we have families living on the streets and health care being denied to those who badly need it but can't afford it. I think all of the money could be put to much better use but if it is going to fixing the economy, seeing some results sometime soon would be nice.
    Mr. Bernake stated, "Overall, the U.S. economy seems poised to grow in coming quarters at a pace roughly in line with the expansion of its underlying productive capacity." Maybe its just me, but I think our economy is anything but poised at this point.

    http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  11. I pretty much agree with everyone here because our economy cannot afford to use more money that we don't have. To be honest, me being a senior in high school, the economic crisis hasn't really affected me too much. Gas prices would be the only thing that comes close to affecting me. Not one politician knows what it is like to be "Joe the plumber" and it should be up to "him" to decide where his money is going to go. Mr. Bernenke's statement, "Inflation has been higher than we had anticipated in February" makes no sense at all. The more money we ask for the more in debt our country is going to be and there is no possible way that is good. Every plan seems to be failing and I don't believe our economy will get better by using money that we do not even have.

    ReplyDelete
  12. I agree,our economy will not get better by using money that we don't have. The plan is just another way to add more corruption to our economy. The vaule of a dollar is going down and would soon be worth almost nothing. I don't see how $450 billion would help our economy in any way.

    source-http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete
  13. believe although it is necessary, we should not ask for another 450 billion. The money used to toward the market, will only raise our market for a few days of blissful plus points instead of negative ones. A couple days later our market will fall again. The stock market is unpredictable, but at the moment all we know is that it’s declining. For the past few weeks in IR we have been watching the market closely critiquing point gains and point losses. Every day it goes up, it must go down. It’s a never-ending cycle. The problem we should focus on is that the “Inflation has been higher than [Bernanke] had anticipated in February”. This is the problem, that they anticipated inflation to begin with, and didn’t do anything about it. I don’t think current situation we’re in right now could have been avoided, but certainly the burden could be lightened if we knew what we were up against. Another problem is that if we give Bernanke more money than others will ask for more money to ease the pain their under due to the economy. Now today, “American International Group Inc. reportedly is seeking a new bailout from the U.S. government less than two months after the Federal Reserve came to the insurance giant's rescue with an $85 billion loan” which shows that these groups will always be money hungry and eager to get Congress to bail them out of the problems they caused. These bailouts are adding up and making our country go into debt further. Money is money in the economy, it can help, it can harm, but mostly it’s going to harm our future. There are going to be serious problems when the economy crashes, and there isn’t any money to solve our problems. Newly elected to be president, Obama claims that "[he wants] to see a stimulus package sooner rather than later" and that "it will be the first thing [he will]get done as president of the United States." Obama is already working on a plan to improve/save our economy, and hopefully it will work when he comes in to office.

    http://www.marketwatch.com/news/story/Obama-plans-quick-action-economy/story.aspx?guid=%7B941CBE93%2D6B38%2D4826%2D9E74%2D0B15416BFCB1%7D

    http://www.marketwatch.com/news/story/AIG-talks-government-over-new/story.aspx?guid=%7B92C4EF08%2D68EA%2D4E4B%2D908E%2D36DDE1BD2E55%7D

    ReplyDelete
  14. I do not see why we should give our money to a guy who just spends it on things that not everyone is being affected by. I for one am not being horrible affected by most of this, however in just a few short months, I will be dealing with more of this. Personally I do not think that me, or anyone else for that matter, should have to pay for what they do not use.

    ReplyDelete
  15. After reading the article at Reuters about Ben Bernanke wanting more money, I am not sure if this is the best thing for the country. People will not be happy with more of their tax dollars being taken towards the new bailout, after we've already had the big $750 million bailout. I have never really understood how the economy and stock market works (luckily I will learn all of this next semester in Economics) but it seems to me that adding more money will help in the short run. We can pay for more jobs, education, and more that way, which is what the Democrats keep fighting for. However, I am unsure then about the long-term effects this will have. I mean, we have to get the money from somewhere, but how in the world are we going to pay it back? I wish that there was more we could do to help the economy. But I guess for right now, this will have to do.

    http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE49J52B20081021
    http://www.federalreserve.gov/newsevents/testimony/bernanke20060719a.htm

    ReplyDelete