Aggravation of economy by Lenka Filipova

Chairman of the Federal Reserve Ben Bernanke appraised the nation's economy in pessimistic way. Even his future prognosis do not show any sign of sanguine days. He foretold that the Fed would continue in the cut-down of interest rate if the housing price decreased and credit crisis continued in malefic impact. However, Democrats reckoned the governmental effort as not sufficient enough as American people are still facing the threads of mortgages foreclosures. According to Bernanke, the overall view of economy is getting worse and worse, and unfortunately, this brings many aliasing sideways effects. Not only is economy doing badly, he also told that the financial flutter in housing market had caused notable derogation over past two years. As far as he is concerned, he does not expect any recession but rather languid rise "followed by a somewhat stronger pace of growth starting later this year". He concluded this upon the effects of the Fed's interest rate cuts and tax abatement of $168 billion. Bernanke's skeptic appraisal of economy brought about stocks rebate. The Dow Jones industrials lapsed 175.26 points at 12,376.98. The private economists judged his sense-making assessment as apparent signal of future rate cuts. Paulson, a chairman of the Securities and Exchange Commission, was forced to tell what are impending intentions concerning the trembling task of mortgage foreclosures. He admitted to continue in further encouragement of the mortgage industry to congeal rates minor mortgages for 5 years and prolong a reprieve to 30 days so that people with significant payment delay will find enough time to shape their loans in much more manageable way.

by Lenka Filipova for PocketNews (http://pocketnews.tv)

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