In his semi annual address to Congress, Federal Reserve Chairman, Ben Bernanke, listed the many problems of the nation’s Economy.
Bernanke’s main point was a call to improve weak markets, which can’t simply be solved by the Fed cutting rates, as inflation would continue to rise in the process.
With the air and automotive industries facing a breakdown, and the rising cost of living affecting housing and energy costs, the country must look to stop trying to keep up with the Global Economy, and take care of home first.
The White House is pushing to improve consumer confidence, which stems from what Bernanke calls a “decline in wealth.” As jobs are being lost and consumer prices go up, those with money, are less inclined to spend it.
In what could be called a Perfect Storm of financial troubles for banks, a weak job market, high food and energy costs, and a weak dollar, a change is not immediate.
The solution will take time, and must start with improvements in healthcare, education opportunities, and a tax code.
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