[Editor's Note: today's blog post is by guest author William Seebeck. During the 1980's, Bill and I worked together at Lexis-Nexis in Dayton, Ohio. Bill has a wealth of experience in online systems, banking, publishing, and public relations.]
By Bill Seebeck
It was reported Tuesday that Federal Reserve Chairman Ben Bernanke believes that housing is bottoming out, that the recession should come to an end by the end of 2009 and while unemployment will be slow to rebound that, things will move over to the positive side, unless of course there is a further problem with the financial system.
Well, that's a stinging endorsement of Happy Days to come if I've ever heard it.
Little or No Credit Available
Perhaps the Fed Chairman hasn't noticed that in the last 90 days the banks have seriously contracted personal and small business credit by slashing credit lines, even to the most worthy. Net, net, sir, every day that goes by, there is less and less credit in the hands of the people.
Housing on a Rebound
Perhaps, sir, you have not noticed that while banks are playing at handling the foreclosure crisis, they are just that playing, creating an illusion. In fact, they are handling lots of requests from people in need, but they are holding up finalizing new mortgages and promote only the fact that they are processing so very many. Processing but not completing. Foreclosures continue.
Banks Rebuffing Congressional Staffs
Perhaps Mr. Chairman, you should make inquiries of Congressional staffs and find out just how successful they have been in helping their constituents with mortgage problems. You will find that the banks have not been responsive to the staffs of our elected officials, the very people who have oversight of the banks and of you, sir.
Squeezing the People
Mr. Chairman, the people are being squeezed from every corner. Our cities and states all have budget deficits and are making serious cuts in services and trying to raise funds in every possible way, mainly on the backs of the people. People are losing their jobs each day. Self-employed folks are out of work also and the Fed doesn't count those people who never did qualify for unemployment insurance. The prices of food and services have not retreated, nor very little else, except the income of the people.
Where is all the money going to come from Mr. Bernanke to improve our economy?
Unemployment Still Rising
Unemployment is rising at a lower level but still rising at more than 600,000 per month and the government expects the national unemployment rate to hit 10% before the end of the year. I'd like to know where the new jobs are going to come from to create the income to fuel the economy and create growth because they are not being created right now.
So, Mr. Bernanke what's the story? What's the truth Mr. Bernanke?
Please tell us sir, because we, the people, don't see it.
What do my fellow citizens think? Tell us below.
Copyright 2009 WBSeebeck. Reprinted with permission.