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Are You Feeling the Economic Pain?

Poll: Bernanke Supports Stimulus; Are You Feeling the Pain?

This morning, Federal Reserve Chairman Ben Bernanke told the House Budget Committee that in order to revive the sagging economy, Congress should quickly pass an economic stimulus package, which doesn't include making Bush's tax cuts permanent. Side-stepping specifics, Bernanke supports a short-term plan that would work with the Federal Reserve Board's own measures to support economic growth and prevent recession.

Bernanke testified that:

"Any program should be explicitly temporary, both to avoid unwanted stimulus beyond the near-term horizon and, importantly, to preclude an increase in the federal government's structural budget deficit."

The housing crisis, rising unemployment, record inflation, a growing budget deficit, and declining retail sales have signaled hard times for the US economy. With all the talk of economic woes, I'm curious — are you personally feeling the signs of an oncoming recession?

Join The Conversation
bunnystack bunnystack 9 years
wackdoodle, I love you. I wanted to say something regarding seimosiev's comment, but you've said it in a much better way than I could, and then some.
wackdoodle wackdoodle 9 years
FYI - seimosiev, much like your vote doesn't actually elect the President of the US in an election, our money is not back by gold. If your currency was actually backed by gold you would be able to into any bank and demand that your currency be coverted into its equivacy in gold. Try it Wells Fargo or BofA will have the security guard escort you to the door so fast you might drop your money. Our money is good because the Federal Reserve, Financial Institutions and the citizenry agree that its good. Our money is backed up by well our money and our word. Here's how the Federal Reserve and Congress puts it. This is on the US Treasury's website: "Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them. Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything this has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy." Note it says our currency has not been backed by gold or silver or any other commodity since 1933. If the Federal Reserve was gone then any paper or coins or anything really could be passed around as 'Legal Tender' because as it was before the Fed came into existence any Tom, Dick, Harry, Bank or State could and would print up 'money' as try to pass it along to other individuals. The Federal Reserve serves many purposes the least of which is regulating bank rates but here's something to think about - How is it a bank with only one million dollars in assets (including cash on hand, monies banked at the Fed, and investments) can turn around and make a loan to a business for over ten million dollars? Where did the other nine million dollars come from? The bank only has one million dollars. The Federal Reserve does not loan money to banks. So where did they bank get the other nine million dollars to be able to write a business a guaranteed loan check which will be accepted at any other bank and can be cashed for ten million dollars cash that get pulled out of the currency system? The answer is the same answer as to why the current interest rate, mortgage rate, inflation and other fiscal issues - banks are and have been creating "fictional" money that the do not have and putting into the economy. There are supposed to be an equal number of "greenbacks" in the system for every loan or debt out there but banks are making loans and creating debt so fast that they're actually in the business of making money now. Banks would love for the Federal Reserve and US Treasury to close up shop because then they could really have free reign over every aspect of money production and fiscal policy. Man I love my economic teacher- he was one of Ronald Reagan's Economic Policy adviser while he was president. Dude kicks ass.
jnj213 jnj213 9 years
trying to plan ahead more during the slow season
The-City-Girl The-City-Girl 9 years
Jillz, the job market is already INSANE: In six months, I got ONE actual job interview!!! (And I graduated SCL and had a great internship and resume). SO it's a damn good thing I got that job! In one more month I was going to have to move back home!
seimosiev seimosiev 9 years
The federal reserve is the problem. If they didn't exist, there would be little to no inflation because our currency would still be backed by gold. Our money isn't worth the paper it is printed on now. The federal reserve isn't anymore federal than federal express. Our congress could be printing their money interest free, but no, they're borrowing money from the federal reserve bank instead at high interest that we pay in income tax. Doesn't have much logic to it. And for everyone that bought a house they couldn't afford, wanting to believe the lies their lender told them... I don't feel sorry for you and it is not the government's job to save you from yourself.
leeluvfashion leeluvfashion 9 years
My family was a victim of unemployment and the housing mess. My family is getting back to normal now however for 2yrs everything was awful. It was so stressful and truly scary to see how the government could be so messed up. I hope that the nation can get back on it's feet; it's horrible.
bunnystack bunnystack 9 years
wackdoodle, I was just about to say the same thing. legalbeagle, where do you live that charges $40 for a box of milk and cereal?! Is this a week's worth for a family or do you get it from a warehouse or something?!
wackdoodle wackdoodle 9 years
I miss Greenspan.
Jillness Jillness 9 years
The thing about gas price increases is it doesn't just effect you when you put fuel in your car. It causes prices of nearly everything to go up, since most everything is shipped in some fashion (groceries, clothes, lumber, etc.)
Jillz1128 Jillz1128 9 years
My main concern is how this is going to affect the job market when I try to get one next year after school. It's a real worry for students.
onabanana onabanana 9 years
It does not all even out for a lot people. I'm lucky enough to have some disposable income so I (like you) can plan and move things around but for people living on the margins it is very difficult. I work closely with low income people and the high price of gas, the increased cost of food is very difficult for them to absorb. Even those who don't own cars find it more difficult to get to work as the cost of public transportation has also increased. It's difficult for older people with fixed incomes too.
kitkatherine kitkatherine 9 years
if my parents and my boyfriends parents were not helping us out, we wouldn't be making it. our grocery bill is awful, like legalbeagle said, cheerios and milk are expensive! we even shop at bigg's, use our milk points (buy 9 get one free!) and try and buy on sale and in bulk what we can.
CaterpillarGirl CaterpillarGirl 9 years
I just got a raise, am buying a house, life is good. Oh and I actually got a fixed rate mortgage, and i understand that inflation rises so we plan for that also. I dont complain about gas because if you take into account your spending, and stop buying crap you dont need than it all evens out.
blondie01 blondie01 9 years
Its actually being said we're heading into a recession...
popgoestheworld popgoestheworld 9 years
Nothing has really changed for me so I feel fortunate.
fiestygirl fiestygirl 9 years
the bf and i are moving back to nyc for his fellowship. we are so terrified that he won't be able to sell his house. how are we going to pay nyc rent and a mortgage?!
katejlogan katejlogan 9 years
Wyoming is a mineral and ag state so the higher gas and food prices actually help the state's economy. We are an anomaly, when the rest of the country is in the toilet Wyoming does well and vice versa. You can make some serious money in real estate right now here. Totally crazy.
Berlin Berlin 9 years
I'll be feeling the hit soon enough...bartending is great but with inflation and a sagging economy, people will either stop going out as much or stop tipping b/c they can't afford it!
legalbeagle legalbeagle 9 years
I cant afford to have a car and an apartment... so Im stuck back at my parent's house... I have a bachelor's degree and a decent paying job... my best friend and her fiance are struggling with their mortgage payments and the both of them get paid pretty well. Also, a box of cheerios and a gallon of milk costs like $40 - CRAZYYYYY
Jillness Jillness 9 years
Inflation is greatly passing pay increases for workers.
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