I hope people are listening to this testimony. The congressmen and senators are asking some pretty good questions. Specifically the mention of commercial real estate mortgage defaults, credit card interest rates, small business lending, inflation, audit of the Fed and lack of economic recovery were incredibly thought provoking.
There are very few positives coming out of this testimony in my opinion. Bernanke deflected the questions regarding the looming potential for commercial real estate problems. Seems as though he will address this issue when it arises but how can you blame him when there are so many problems that cannot be reversed. Unemployment is a major problem and couple that with the tightening of small business lending, the US economy looks really frozen and set for more deflationary pressure in the near term.
Bernanke also mentioned that the global recovery will not be driven by the American consumer and that it will depend on the emerging markets. I just can't see the USD holding such a low value against the majors.
There are very few positives coming out of this testimony in my opinion. Bernanke deflected the questions regarding the looming potential for commercial real estate problems. Seems as though he will address this issue when it arises but how can you blame him when there are so many problems that cannot be reversed. Unemployment is a major problem and couple that with the tightening of small business lending, the US economy looks really frozen and set for more deflationary pressure in the near term.
Bernanke also mentioned that the global recovery will not be driven by the American consumer and that it will depend on the emerging markets. I just can't see the USD holding such a low value against the majors.