I just read a disheartening article about Federal Reserve Board Chairman Ben Bernanke’s bleak outlook on the American economy. I include an excerpt:
On Thursday, one day after American stock markets plummeted in the face of mounting bank losses, soaring oil prices and record lows for the US dollar, Federal Reserve Board Chairman Ben Bernanke gave a gloomy economic forecast in testimony before Congress’ Joint Economic Committee.
Bernanke admitted that the US housing slump and the credit crisis resulting from soaring defaults of subprime mortgages had worsened since credit markets froze last August, and predicted that US economic growth would fall sharply in the fourth quarter of 2007 and the beginning of 2008.
He said the housing crisis would worsen in the coming months, as millions of homeowners with adjustable rate mortgages faced sharply higher interest payments when new rates kicked in, and hinted that the crisis on Wall Street could spiral into a full-blown recession.
[…]
“I’m very concerned that there may be a bigger storm on the horizon. Quite frankly, I think we are at a moment of economic crisis stemming from four key areas: falling housing prices, lack of confidence in credit-worthiness, the weak dollar and high oil prices. Each of these problems alone would be enough of a threat to our economic well-being. But taken together, they are essentially the four horsemen of economic crisis…”
Even during periods of so-called economic progress in the United States, the working class struggles with poverty. Approximately 40% of U.S. people fall into poverty during any 10 year period. Millions of working people live in poverty in the United States. Millions of college graduates live in poverty in the United States. Not only do millions of U.S. children live in poverty, but millions face hunger.
I do not want to even imagine what would happen during a U.S. economic recession!
Worst yet, the Federal Reserve is privately-owned. It works for the interests of the rich. When the economy goes downhill, they will hang the working-class out to dry to protect the status and assets of the rich.
Without reliable credit, the typical American will lose their car, their home, and most of their other possessions. The typical debt-ridden American can afford little without a credit card.
I urge everyone reading this to make smart financial decisions. Use self-control, and consider the long-term effects of your choices. Let’s try to save our money, and try to avoid succumbing to impulsive desires to purchase needless material goods. Also, remember to diversify your savings and investments. In an economic crisis, even seemingly secure investments can go under. Consider the people who lost all the money they had in the bank during the Great Depression when the banks failed.
Discuss the current economic situation, personal budgeting, and related issues in the Hunger and Poverty Forums. We need you to share your knowledge and opinions. It’s completely free, and all viewpoints are welcome.