Economic Conversation

AUTHOR: Colin Keller

As we struggling through these tough economic times, we continue to hear contradictory information.  Each and every day the public and private sector gives us uplifting economic data that helps to support that things are getting better.  It seems right after we get this news we see headlines like “National Unemployment Rises to 8.9%.“  This piece of economic data comes out shortly after Federal Reserve Chairman Ben Bernanke stated that the economy could continue to grow later this year.  So what is the truth?  Is it possible that unemployment is continuing to rise yet the economy is getting better?

It is not only Ben Bernanke who is giving us contradictory information, it is also the private sector.  In March, Ken Lewis, CEO of Bank of America, made the statement that his company would be able to pay back TARP funds.  Today we learned that Bank of America will need another $34 billion in government assistance.  What gives?  How can you possibly lose track of $34 billion dollars?  Obviously he was trying to instill confidence back in March, but to be as bold as to say that Bank of America could pay back TARP funds by the end of the year is just plain lying.

We have also heard President Obama state that the stimulus package is starting to help the overall economy.  I realize it is going to take quite a bit of time to see the effects of his economic policy, but are we to believe him?  It is hard to believe anyone with their hand in the piggy bank these days.

The goal of this website is for me to get the conversation started and let you, the reader and blogosphere, finish.  Please post your thoughts and opinions and I will chime in periodically to offer my opinion as well.