Former Fed chief Bernanke sees bad year, no quick recovery

[Yo_Mama_Been_Loggin]

The U.S. economy could shrink by 30% or more this quarter as stay-at-home orders aimed at slowing the coronavirus outbreak choke off business and it could be a couple of years before the economy regains its footing, former Federal Reserve Chair Ben Bernanke said Tuesday.

"Overall, it could be a very bad year for the economy," Bernanke said in a Brookings Institution online event, though he added that so far the fiscal and monetary policy responses have been pretty good, though more will be needed.

"There are things we can do to open up the economy, significantly perhaps, but I don't see the economy returning to a more normal state until there's much greater confidence . . . that opening up the economy won't restart the crisis."

Still, he said, history suggests the recovery will be considerably shorter than that which followed the 2007-2009 financial crisis. "The U.S. economy will recover and within a few years will show only modest marks of this experience," he predicted.

https://www.msn.com/en-us/money/markets/former-fed-chief-bernanke-sees-bad-year-no-quick-recovery/ar-BB12hxvr?li=BBnb7Kz

Tired of winning yet?

[guillaumeb]

1. What about the Easter recovery?

Or did Trump mean Easter of 2024?

[Victor_c3]

3. I believe he is way overly optimistic

I believe that there is a monetary crisis and it’s not just the virus and quarantine shutting the economy down. Corporations have been ladening themselves with massive levels of debt thanks to incredibly low interest rates and not investing in their business, but rather in stock but-backs.

I believe the virus has pushed the current status quo to collapse, as things were getting very tenuous.