Ben Bernanke, the Fed Reserve Board Chief, says that the economy is bottoming out and will turn up later this year. http://tinyurl.com/c5e826
But before you break out the champagne glasses, he warns that the recovery is likely to be sub-par and only gradually gain momentum.
The good news? Little or no inflation. Vendors are still too shell shocked to raise prices.
The bad news? The recovery is very fragile and any reversals "could darken the economic outlook."
He claims that the financial system is gradually improving and the banking system is slowly healing.
My question? So what is happening to all of the mysterious CDOs that screwed up bank balance sheets and why didn't the FDIC just come in and take over Citibank, etal like they do with smaller banks so we can just get this over with.
Nonetheless, I'm willing to take good news where I can find it. And it is my hope that the Feds use this opportunity to rebalance the financial system to support the tapped-out middle class who are the engine who drives the world economy.
