Economy in “Freefall,” Says Ben Bernanke
Yesterday in remarks to Congress, Ben Bernanke said the economy is in a “freefall.” While he didn’t want to talk much about a recession, it appears that the writing is on the wall, no matter how much “economic stimulus” we get.
One of the more distressing parts of Bernanke’s address yesterday was the prediction that some of the smaller banks in the US may fail. He assured Congress (and by extension, the public) that larger banks would be fine. After all, they have received cash inflows and bailouts from a number of sources recently. Mortgage lenders could be among those “small” banks that fail.
In these times, it is important to carefully plan your financial path. Consider large expenses, especially if you have a resetting mortgage, and decide how you can make your financial situation more secure. The important thing is to not panic, and to look at your options. Before the situation gets dire for your personal finances.
Tags: recession, Ben Bernanke, home mortgage loan, mortgage loan blog,
mortgage lenders, resetting mortgage, personal finances
May 26th, 2008 at 10:15 am
[…] news also fits in with what Federal Reserve Chair Ben Bernanke said toward the end of February. He warned that some of the smaller banks might be susceptible to crashing as the economy finds itself in a “freefall.” Bernanke is not the only one who worries […]