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Bernanke Says Economy Still Needs Stimulus Funding

July 28, 2010 by  

Bernanke Says Economy Still Needs Stimulus FundingFederal Reserve Chairman Ben Bernanke indicated last week that the frail United States economy will continue to need Federal stimulus spending to fully recover from the 2008 recession.

While testifying before the House Financial Services Committee and the Senate Banking Committee, Bernanke suggested that President Obama and Congress could bolster the weakened economy by extending the tax cuts passed by the previous administration, according to Bloomberg Business Week.

"In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy," said Bernanke. "There are many ways to do that. This is one way."

However, just a few hours before the Fed chairman made his remarks, U.S. Treasury Secretary Timothy Geithner said that the Obama administration has no plans on extending the tax cuts to families that make more than $250,000 annually, Business Insider reports.

Meanwhile, Bernanke was much less bullish on the economy than he was during his last testimony back in February, noting that it will take "a significant amount of time" to restore the near 10 million jobs lost during the last two years.

"One factor underlying the committee’s somewhat weaker outlook is that financial conditions—though much improved since the depth of the financial crisis—have become less supportive of economic growth in recent months," he said.

Bernanke also defended the financial overhaul bill recently passed by Congress, calling the measure an "important step" toward closing the gaps in Wall Street’s regulatory system.
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  • Al Sieber

    The only other stimulus they need to do should be for the American people, create jobs; get this country back on it’s feet. instead of stuffing the money in their pockets.

    • DaveH

      Cutting back on the size of Government is the only Stimulus Plan that will really work.
      Handing out cash to corporations run by losers is a sure way to prolong the bad economy.
      The Free Market is the most efficient use of our monetary resources. Get the Government out of the Marketplace and let the consumers vote with their pocketbooks for the companies that are doing the job right.

      • Al Sieber

        DaveH, I know, but, they’re never gonna do that, we haven’t had a real free market in over 30 years.

        • Dan Burke

          That is why some of us are thinking we actually need to create our own small businesses. Dang, with how tough loans are to get now days, I am thinking that by the time I can get a loan, I won’t need one. Why? Because I asked the bank the following, “if I can come in here with a list of proven orders for my proposed product, can I get a loan so I can fulfill those orders?” I was told no. So I will have to do things on a cash basis, telling customers upfront that the time schedule of getting their product will include some extra time because I will ordering the parts AFTER their money has cleared the bank (not something I think will help get customers but true nonetheless). It won’t help my business and leaves me to believe that I will have to run a debt free business. And from comparing my personal finances from when I was debt free to when I was not (and this why I so much want to be personally debt free because even without money skills and made less money too, I had money to spare when I was debt free), I am inclined to believe that if my small business concept can make it past these initial growing pains, that by the time the banks are interested in loaning me money that I could care less because by that time my business might actually be loving the debt free world (a rarity I understand and probably runs the risk of being a business that the new financial overhaul will see as a systemic risk because it operates outside the accepted model–for now I am way too small as a home based business to get any attention).

          • Viktor Leben

            Dan,

            You need to find an investor. Get a business plan together. How are your Account Receivables ? In other words do your customers mostly pay on time ?

            What’s you do is form a Limited Liability Corporation that you own. Have an attorney set it up for you. Then form a larger umbrella corporation and sell shares to investors this larger corporation does business with your LLC …..

            Look for a venture capitalist, then you are all set. Check out investor clubs ! Network….

            Damn Bankers !

        • s c

          Try and get a typically braindead progressive to understand or admit it, Al. Those geeks believe everything their “leaders” tell them. They have no room for facts or anything that comes close to the truth.
          If we had a truly free market, most of the economic insanity we’re experiencing now would have been corrected. Now, the trick is to get rid of ALL the stinking, career politicians who are responsible for trashing capitalism and telling us in the same breath that capitalism is bad. It’s POLITICIANS and progressives and their bastard puppet masters who are EVIL.

    • Vic Bailey

      It’s time that we quit giving money away like we have it. It’s time to work for it, Bernanke wouldn’t know the truth if it ran over him in a Hummer. America needs to quit listening to these greedy people that want ALL you and I have. Quit sending LAWYERS to Washington, every time you do, it cost the taxpayers BILLIONS. Lots of these LAWYER run organizations are so corrupt by Constitutional Law, but not by LAWYER’S Laws. You all can figure it out. Keep the LAWYERS OUT OF CONGRESS!!!!! Semper Fi.

    • Matthew Marquard

      All the stimulus that we need is for the bloody gov’t to get out of our way. When was the last time that they gave us a stimulus that actually worked? The answer to that ? is that they never did. I wish that they would give the power to coin money back to the legislature where it belongs & back it by gold. Every day our dollar declines in value. What the radicals have planned for us is a communist state. I would like it if the Fed. bank & the gov’t would get out of our bloody way & let the free market system correct itself. Of course we would be living like our grandparents did, but I would gladly do it so that my future children can have the chance to live in a better tomarrow. The New Deal was a mistake, because it dragged the great depression on for a decade. The great depression elsewhere was simply known as the depression. The almost depression that Calvin (Silent Cal) Coolidge saved us from in the 1919 sent us into the prosperou roaring 20′s. Calvin cut spending by 50% & got unemployment down to 3.3%. The great depression came about when Herbert Hoover came into the office of the presidency & put into place the Hawley tarrif. The thing that he did that made matters worse was that he wanted the wages to stay the same & no jobs to get cut. We need to recognize that we are on the wrong path once again & right ourselves. We also need to cut spending by 50% or risk losing our triple A rating. Write your sen. & Rep. & say that we need to end this maddness now. Now is the time to be a member of the party of NO & KNOW.

  • Al Sieber

    They make money the old fashion way, print it up, charge you for it; then steal it from you through inflation.

    • Viktor Leben

      Al,

      You can print it up too ! Just like they do on “Hogans Heroes” ! You just need good counterfeiting equipment ! A Macintosh and a good printer ! Print up low denomination bills, like $5 and $10 …..

      You’ll need a programmer to disable any controls in Adobe software that will stop you from printing the right shade of green. Pick up a copy of “IDAPRO” at http://www.hex-rays.com/idapro/ and find out what type of limiters they are putting in Adobe software or your printer drivers …… Once you circumvent the program controls you’re probably get the right shade of green ….

      Good Luck “making” money !!!!!

      • Al Sieber

        Viktor, I don’t have to print it up. we have a small Au. mining operation and use it for trading and extra $. with the new tax laws coming in on Jan.2, 2011 I’m going to get rid of my business licence and work on my own. incidenty, the Fed. Judge struck down S.B. 1070; it shows she’s answers to the Obama Administration who doesn’t care about the American people.

        • s c

          I heard that on the radio, Al. It’s time for Governor Brewer to tell Herr Obummer what he can do with his illegitimate administration. It’s time for that ‘judge’ to go hump herself. When a government REFUSES to do its job, it is the CONSTITUTIONAL RIGHT of CITIZENS [individual STATES] to get the job done.
          Herr Obummer has chosen to be the #1 law-breaker in America. Let him pay the price for that choice. America and Arizona owe that bum NOTHING. UP with the CONSTITUTION, and DOWN with EVERYONE who violates the Constitution. WE ARE NOT WASHINGTON’S SLAVES!

  • s c

    I find it more than curious that Ben the Boob, the head of an illegitimate private corporation (also a MONOPOLY), can be viewed as any kind of an economic expert. Supposedly, Bennie knows more about the Great Depression than anyone else in America. If that is so, then it seems beyond strange that he just can’t seem to get his thoughts together and put America on the right track.
    Could it be that Ben’s reputation wasn’t earned? When Ben decided that Americans are no longer entitled to know how many dollars are floating around, it signaled the fact that there is something being hidden from America by the Fed wizards.
    Come on, Ben, we’re all on the same side, aren’t we? You can trust the American people. To date, unless or until you can prove that you are where you belong, we just don’t have any good reason to trust YOU.

    • Al Sieber

      SC, you mean helicopter Bernanke who said if he had to he would throw money out of a helicopter at the people.

      • s c

        Exactly, Al. You rate a gold star for being so observant. Ben the Boob, Helicopter Ben, Mammon’s gift to economics, Ben the All-Seeing – America’s Einstein of Economics.
        No matter what you call him (the ‘titles’ are almost endless), he can never be any better than illegitimate. Kindly remember he’s the “head” of the Fed, and it is illegal, immoral and it’s a corporate MONOPOLY.
        Anybody wondering why progressives HATE monopolies, but they LOVE the Fed? Why, you’d think America’s progressives and other assorted mental defectives are “a part of the plan.” Hmmmmm.

  • Colo43

    no more spending of any kind- get on track and loosen up on all your taxing and regulations that are killing the business’s and economy. Help to create jobs instead of sending them abroad or allowing the illegals to take them.

  • germeten

    Congress needs to retain ownership of the currency it prints (US Dollars), not sell it to the Federal Reserve for cost of paper and ink (Federal Reserve Notes) and then (stupidly) borrow it back at face value, plus interest! …whenever some unforseen crisis occurs, not covered in yearly budget. (That’s all the national debt is, a perception, a ruse, a claim upon the people, but is it real? Haven’t the banksters extorted enough from US? Eventually sufficient money will need to be printed to pay it off, or the much better solution,
    renege; tell the Federal Reserve to go pound salt.)

    Once the ownership issue is fixed, Congress can print as much money as it needs, on demand, as projects and legislation require. Sorry if that offends or scandalizes you, but it’s perfectly legal according to the Constittution, and is NOT the same as fiat currency, as the banksters would have you believe. Really, it’s fractional reserve banking that creates the fiat currency, creating $100 new dollars on the banks’ books, for every $10.00 held on deposit. But that credit belongs to the banks. Who do you think the $2 trillion dollar bail- out benefitted, not you or me.

    • dan of arizona

      How about the three trillion that was printed with no accountability and passed on to the tax payers and when asked where it went they said none of your business
      vote for ron paul

  • http://www.furbelowfarms.com Elijah

    The problem is that continuing to print “money” without any assets to back the money up, makes it become more and more worthless every day. And soon they will be throwing it out of helicopters? HAH no one will show to get it, it will be littering!

    A wise man invests in commodities, real commodities like chickens, ducks, and quail.

  • Jack

    Bernankhe is just a “Yes” dummy for the rest of the administration dummies and fools. He is further proof that the federal reserve should first be audited to see how much money has been stolen and then abolished completely. The federal reserve is a disgrace.

  • http://GOOGLE JHSUNBUM

    WHAT THE ECONOMY NEEDS IS TO GET RID OF ALL OF THE COMMUNIST IN THE GOVERNMENT. WE CAN DO THIS BY VOTING OUT ALL THE DEMOCRATS AND LIBS.

  • bill

    It seems to me,the American people need to vote out “incumbents” because
    they refuse to stand up for our Constitution or the American people.I suggest many are just “closet liberals” You decide !

  • Victoria Coots

    Bernanke is economically challenged to say the very least. How much more failure needs to be exposed with respect to all these stimulus before he gets the picture. Over 10% unemployment, continued job losses, skyrocketing debt and deficits, total disregard to the pay as you go policy, and on and on. How about applying some basic economic common sense??

  • ONTIME

    No it doesn’t Bernake!!! Your kind of thinking is half-baked.

    The country needs a major RE-PARE of it’s governments across the country, less taxation and better oversight of monies spent by it’s leadership and a congress that can be held accountable. The nation needs economic freedom, national security and border sovereignity, it needs to wrap up the loose ends of a terrorist threat and rebuild the leadrship we can exercise because American know-how is still among the best in the world when the right people are allowed to lead.

  • germeten

    Who needs gold backing when the currency is backed by the full “faith” and credit of the US government. Banksters have taught us that backing really isn’t necessary so long as the appearance of solvency is maintained. Value isn’t created just by asset backing but also by the threat of punishment (anti-counterfeiting laws.)

    The Federal Reserve really doesn’t need to be audited. A rough approximation of their profits could be gleaned by doing the following: (the first step could be the most difficult);

    1. Determine how much money the US Treasury has printed every single
    year since 1913.

    2. Subtract the Congressional budget every year, from the amount printed. Subtotal.

    3. Add 3% of GNP (fee the Fed charges US for it’s “management services”) for every year, to subtotal.

    4. Compound the 3% for every year, since 1913, add to subtotal.

    5. Compute the dollar value of the prime interest rate for every given year. Add this yearly interest in dollars to the subtotal, for a grand total.

    The grand total margin for error is +/- a half a trillion.

  • http://eachstateretaliate.blogspot.com/ Tea Party Tim

    Bernake believes that the government should continue stimulus spending and yet at the same time believes that tax cuts should expire at the end of 2010.

    Why? Quite simply because this allows the government to control the monetary system of our country and not the people.

    Why is this so important? Because it is the government through the Fed that has artifically inflated the stock market and is now the primary investor in the American economy. If stimulus money ceases, then the Feds investments in the market cease and the market collapses.

    How does this affect the average American? It doesn’t. It does, however have an impact on the average politican that will suffer tremendous loses if not complete loses. It does affect the rich and powerful and in particurlar the foreign investors that have no real interest in the American people.

    Stop the stimulus and audit the FED. Follow the money.

    • dan of arizona

      Know that makes sense

  • http://gmail i41

    Gentle Ben, start by cutting Onumnutts and Congresses salary in half, close down IRS, Dept of Ed.,Energy. Labor, Ag., Trans, and all the other alphabet soup unelects pee brained worthless idoits. For starter. Send all the idoits to a muslim country for a few years, Blarney, may be will quit lisping and use his mouth, for three squares every day.! Omoron can bond with peophile muslims and have a another anti USA goat riding party. Of course Omoron still loves Weather Underground ideology, and surrounds him self radically nutjobs who hate our country and capitalism. All the democrat bastards have wanted socialism and a dictar run country from the late 60′s.

  • s c

    While we’re on the stimulus topic, Americans, I’d like to know how many readers are aware of the recent infamy pulled off by a certain White House duo (not including Motormouth Biden). It seems that the wife of a certain prez took great pains to see to it that her brother at an Oregon university ["Beavers"] got a nice chunk of taxpayer dollars so he could ‘keep his job’ as a staffer in the school’s basketball program. The figure is in the MILLION$, folks.
    Seems as though it helps to be “connected” if you’re in need of a quick, easy STIMULUS package. As Yogi Berra might say, “You can look it up.” Or, you can rely on the lamestream, prostitute media.
    Is there NO END to the rampant, thuggish stupidity being perpetrated by this half-assed, insane, above-the-law, freedom-hating administration? OK, progressives, line up to praise and defend your “God” – AGAIN.

    • dan of arizona

      Hey SC
      isnt that a conflict of intrest?

      • s c

        Dan, it’s AT LEAST a conflict of interest, and probably MUCH MORE. First, there’s Eric ‘da mouthpiece’ Holder (and the so-called “Justice” Department), protecting Herr Obummer. Second, we have the pimped-out, streetwalker media ALWAYS
        trying to make Herr Obummer look ‘good’ [by keeping SILENT and paid very well].
        Next, we have Herr Obummer’s jock strap supporters, who are beyond hypocrisy, and will try to protect Herr Obummer 24/7, REGARDLESS of what he does or says. And, then we have the rest of us, who may not be aware of the fact that Obummer’s wife’s brother, who is the sole beneficiary of that huge pile of easy cash (and how he got it). What do you think would happen if a conservative had done what Herr Obummer did? Also, it does seem to point out that the wife of a certain prez seems to have way too much leverage in pulling her hubby’s ‘strings.’ Kinda reminds you of the Clintons, doesn’t it?
        That circus should make for quite a movie or TV series when Herr Obummer is bounced out of the White House. Until then, it’s up to us to see it for what it is – and who Herr Obummer is.

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