US economy not out of the woods still
Posted by Stephen Cline on August 28th, 2010The Fed Reserve Chairman Ben Bernanke has cautioned that the US economy is still not out of the woods. There are some signs that it is indeed recovering based on various indices as well as figures and facts related to the US economy. But this is not a definite sign that the worst is past yet. He said that while this huge economic crisis has its worst being us, it still has some sting left. There are signs that the ding-dong crises of the past two years are behind us and that there are signs of a revival. But it is also true that there are many issues that people are grappling with, the biggest of these being rampant and endemic unemployment. There are also so many cases of bankruptcy in businesses which are occurring and foreclosures that are present across the length and breadth of the economy.
Bank lending is quite weak, even though the banking system is limping back to normal. The unemployment rate is still close to 9.7% which is huge and quite unacceptable by any standards. Layoffs seem to have eased a bit, but a lot of companies are still not recruiting new hires to any appreciable levels.