Federal Reserve Chairman Bernanke Says Recession Over

The recession has hit everyone in this country like a ton of bricks. People’s property values have plummeted, many have lost their jobs, and their once prosperous portfolios are now not enough to carry them through. Everyday people are searching for some positive signs that all of this pain and turbulence is finally coming to an end.

Yesterday, we might have gotten at the very least an officially stamped one. That pretty much depends though on how much you believe in Federal Reserve Chairman Ben Bernanke’s word.

Speaking at The Brookings Institution in Washington D.C., to mark the one year anniversary of Lehman Brothers, Bernanke made his most positive public statement on the recession while answering questions after his speech. His remarks were covered in an excellent article on the Wall Street Journal entitled “Bernanke: Recession ‘Likely Over’”.

Federal Reserve Chairman Ben Bernanke said Tuesday that the recession was “very likely over,” as consumers showed some of the first tangible signs of spending again.

Mr. Bernanke, who had become cautiously more upbeat in recent weeks amid signs of third-quarter growth, said for the first time that forecasters agree “at this point that we are in a recovery.”

These remarks came on the same day that the Commerce Department released their report on retail sales increasing by 2.7% in the month of August. I’m not certain that report was the main basis for Bernanke’s comments, but it certainly had to be a contributing factor.

Bernanke though was not one hundred percent go getter positive. He did caution people to not expect an end to the problems that people are having at this point in time. He cautioned people to not expect too much, too fast. The unemployment rate for instance, which now sits at a 26 year high of 9.7%, is still expected to rise even more.

“Even though from a technical perspective the recession is very likely over at this point, it is still going to feel like a very weak economy for some time as many people still find their job security and their employment status is not what they wish it was,” he said.

So the recession is over, but its still going to feel like were in a recession. That doesn’t really sound so great to me, but at least were headed in the right direction. It kinda sounds like when they tell you in Phoenix that its 105 degrees out, but its a dry heat. That’s still hot in my book. If we still feel like were in a recession, who really cares that its over screams the pessimist in me.

I have to remind myself, and urge others to remind themselves that were in this thing for the long haul. There are no quick fixes to this recession and even though it might take a long time to feel the effects, its comforting to feel like the economy is finally on the upswing.

I also applaud Mr. Bernanke for these comments. That applause is due whether he honestly believes what he’s saying or not. By Bernanke making these comments I think that it will at least ease people’s fears and possibly encourage optimism. That alone could help contribute to our climb out of the recession. I think a whole lot of what determines how long the recession lasts, is people’s attitudes to it. Its a simple fact that we need people to be out spending money to stimulate our economy. People that feel that the recession is going to go on forever are not going to be saving any money they may have, their going to hoard it which will not contribute to our recovery in anyway.

I’m going to go ahead and side with our expert here, Mr. Bernanke, and go ahead and declare the recession over. If it’s not true and we’re still in recession, then it might help us out of it by trying to raise public sentiment. It really seems to be a win-win. So party it up America and get out there to spend some money, the recession is finally over and there’s nothing but blue skies and sunshine ahead. Have Mr. Bernanke and I ever lied to you before?