No need to worry, Bernanke says it's all OK

Ben Bernanke is optimistic. Why? He's apparently figured out he'll be collecting a big fat FED paycheck for years to come and can never be fired. But other than that he sees clear sign that the economy is totally OK. Is it the fact that 10 of the 19 banks the government stress tested will need billions more in capital? Is it the constant drops in home prices that now leave a full 20% of the American people owing more on their homes than their worth? The news that lenders were the ones responsible for $1 trillion of the bad subprime loans? That Bank of America needs another $34 billion? No. He's just got a feeling.

Federal Reserve Chairman Ben Bernanke gave his most optimistic prediction yet Tuesday about the end of the recession, saying he expects the economy to start growing again this year _ although the comeback could be weak and more jobs will disappear even after a recovery takes hold.

The Fed chief told Congress' Joint Economic Committee that he saw hopeful signs, including firmer home sales, a revival in consumer spending and some improvement in lending conditions for banks, businesses and individual borrowers.

"We continue to expect economic activity to bottom out, then to turn up later this year," Bernanke said.
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"A relapse in financial conditions would be a significant drag on economic activity and could cause the incipient recovery to stall," Bernanke said.

Barring such a setback, Bernanke suggested the worst of the recession _ for lost economic activity _ has passed.
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Striking a lighthearted note, Bernanke said that after the economic crisis has ended, "I look forward to a long period of boredom."

Oh Ben, you are our government's foremost comedian. But hey, look at that staggering optimism. What's it based on? The fact that he's pretty sure things can't get any worse. Except for job losses. But everything else can't. Unless banks continue to be insolvent. But otherwise, we can look forward to a period of weak, almost imperceptible economic recovery with continued job losses.

So hive five the guy in the bread line next to you. You won't have a job and the unemployment line is going to get longer, but there will be a minuscule bump in GDP numbers. Because that's what's the important focus: GDP. Not the people in the economy, an arbitrary measure of the economy. And why not, that's the kind of laser like focus that helped bring about our new Gilded Age and subsequent New Depression. Looks like things are back on track. All better now.