Fed Sees Turmoil Persisting Deep Into Next Year

[groovedaddy]

WASHINGTON — Federal policy makers have concluded that the turmoil plaguing the housing and financial markets is likely to spill deep into 2009, becoming one of the most significant domestic problems to confront the next president when he steps into the White House in January.

Ben S. Bernanke, the chairman of the Federal Reserve, publicly indicated on Tuesday that he believes the problems will persist into next year when he outlined a series of steps the Fed is considering in the coming months.

One such step would extend low-interest lending programs to Wall Street’s largest investment banks into next year. The programs, one of which was set to expire in September, can continue only if the Fed issues a finding that there are “unusual and exigent circumstances” that justify them.

Mr. Bernanke also recommended that Congress grant the Fed broader authority to monitor and supervise the financial markets to assure greater stability in the future. But with time running out on this session, lawmakers are unlikely to adopt such legislation before next year.

http://www.nytimes.com/2008/07/09/business/09housing.html?_r=1&th=&adxnnl=1&oref=slogin&emc=th&adxnnlx=1215619379-aWWv40126wmcM1eSJMLRig

[tularetom]

1. I see it persisting deep into for fucking ever

Unless the entire tax structure of the US is drastically altered.

[Gman]

2. I think we need to start tracking the things this administration is

putting off on the next administration.

1) War with Iran
2) Credit problems
3) Regulation of energy trading
4) ...

Note... I know the article is about congress needing to give the fed authority to do what it needs to do but this is already the second half of 2008 and we've known about this problem for at least a year now and this administration has done nothing.

[northernlights]

5. you forgot a few...

easy to do, given the # of messes Bush has managed to dump!

War with Afghanistan
War with Iraq
Katrina survivors *still* in upheaval
The real unemployment numbers

Not to mention a nice investment plus rainy day fund turned into a historic pile of national debt, owed mainly to our "friends"

[sendero]

6. not to mention..

... tapped out consumers
crashing dollar
excessive debt, personal, business, governmental
housing still crashing, not near the bottom yet
banks still have billions to write off
consumer sentiment levels low and going lower
government that is functionally bankrupt

We'll be lucky to get out of this next decade.

[DJ13]

3. The Fed should NOT have broader authority over the markets

The stock/commodities markets should NEVER be regulated by the same agency that regulates the banks.

The SEC was created just for that reason after the Great Depression.

[groovedaddy]

4. Amen. Just like at the do-do we're in now! n.t