President Obama reappoints Bernanke to Fed as house prices rise










Press: in Brief From The Times August 26, 2009


House prices in the United States, a key factor in dragging the world into recession, recorded its first quarter-on-quarter increase since the market started to fall three years ago.

The news helped to push shares higher, even after markets had already been boosted by President Obama’s reappointment of Ben Bernanke for a second term as Chairman of the US Federal Reserve.

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David Blitzer, chairman of the index committee, said: “For the second month in a row, we’re seeing some positive signs.” He said that there were “more than green shoots” in the housing market, but added a warning that a rise in interest rates could easily snuff out the upturn.

Consumer confidence is also rising. the much-watched Conference Board index, Nevertheless, the index was still well below the 61 points that it hit before Lehman Brothers’ collapse last September, emphasising the continuing worries about jobs and housing felt in many American households.

Mr Obama interrupted his holiday to surprise markets by announcing the reappointment of Mr Bernanke — whose original term is not due to expire until January 31 — to end uncertainty about the direction of the Fed.

The central banker, whose reappointment must be approved by the Senate,The President said that Mr Bernanke’s “temperament, his courage and his creativity” had helped to avert a second Great Depression.

Laurence Kantor, head of research at Barclays Capital, said that Mr Bernanke had done an “outstanding job” of restoring stability to the US economy.

The challenges awaiting Mr Bernanke in his second four-year term were underlined yesterday when the White House added $2 trillion to its long-term budget deficit predictions, based on worsening unemployment and sluggish economic growth.

Peter Orszag, director of the Office of Management said that the deficit between 2010 and 2019 would be $9 trillion, rather than the $7 trillion estimated in May, blaming the need for higher spending on unemployment benefits and food stamps. The Obama Administration expects unemployment to hit 10 per cent next year.

full article: http://business.timesonline.co.uk/tol/business/markets/united_states/article6809895.ece

Fluffs view.........

Now the day the 2009 FDIC report release (not public now till tomorrow) the swanky Bernanke gets his second term and the happy back slapping suck arse bullshit cant come thick enough the talk of Stability when everyone knows its pumped with an inflationary time-bomb

As for Obi-wan is now showing the growing detachment of wealth and it is frightening, but how much more the fancy talk and hypnosis can the common man take?

well I guess they can chew the courageous and creative trillions of taxable fresh aired loans has to be payed back so here comes hyperinflation by bucket load..

man these guys are full of it......