Boy, I Feel Much Better – Bernanke and Bush Agree – No Recession

Politics are funny. Candidates running for President are telling you how everything is a train wreck and how they will fix it. President Bush and Fed Chairmen Ben Bernanke will tell you that everything is fine.

Yesterday, President Bush and Ben Bernanke, in separate speeches, acknowledged (the obvious - that we are in an economic slowdown. However, they both assured the country that we are not heading into a recession. Of course, this is the same set of politicians that was assuring the country that this real estate bust would not be a problem.

You are never going to hear a politician acknowledge something until it is obvious. Until the economic growth numbers come out negative, it will be the same old political spin. Does anyone actually think that we are going to avoid a recession?

Let’s look at the reality of things:

Personal income for most consumers is not increasing and has not increased in a long time
Corporations are hesitant to invest money to expand because of the uncertainty
Investors are hesitant to invest money because of the uncertainty
Consumer spending is vanishing
There is no solution to the foreclosure crisis in America
Oh year….. $ 100 plus oil

Yep, things look good to me.

I really hope that our next President handles things more effectively and realistically. It is the policies of this Administration that has landed this country in the mess that we are currently facing. It is the same Administration that continues to tell the American people “all is well.” Unfortunately, the reality of the pain that is being felt by consumers is telling another story.

Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.