Intersecting Minds: Education, Business and Technology at the North Carolina State Jenkins Graduate School of Management

Bernanke Acknowledges Depth of Crisis | February 24, 2009

Fed Chairman Ben Bernanke came out with his strongest statement yet on the severity of the recession this morning.

Federal Reserve Chairman Ben Bernanke said he’s hoping the recession could end later this year, but he cautioned that a full economic recovery will take “more than two or three years.”

The head of the central bank said a turnaround will only occur “if actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability.” He also acknowledged the recovery might not go as well as hoped.

Note the key passage, “if actions taken… are successful in restoring some measure of financial stability.” That is as of yet unknown, but it’s one reason I’ve supported both the stimulus package and the foreclosure plan presented by the Obama administration. Both pieces of legislation are direct action aimed at staunching the recession.

President Obama will address the nation tonight in a quasi-State of the Union address. He’s expected to continue presenting short-term solutions to the economy, as well as tackling longer-term issues such as health care and entitlement reform that need to occur before the national deficit can be brought under control.

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