Bernanke On The Economy

According to Bernanke, we might escape the fate of a long extended slow recovery. The keyword is might. Traditionally there is a slow recovery from a financial crisis especially one that exceeds a periodic recession. But the actions taken during the recovery period do alter the speed of the outcome.

If corporate third quarter results which begin a week from Monday are reasonable, I suspect there will be some relief.

Reuters: Bernanke hopes U.S. not relegated to slow recovery

"Although financial markets are for the most part functioning normally now, a concerted policy effort has so far not produced an economic recovery of sufficient vigor to significantly reduce the high level of unemployment," he said.


He said the recent crisis reflected a failure to regulate financial institutions, manage risks and anticipate shocks rather than shortcomings in economic theory.