Ben Bernanke’s big ‘if’

The Fed chief sees economic recovery next year, with some caveats

President Obama’s address to Congress could not have had a “better lead-in” than Wall Street’s 3 percent to 4 percent bounce on Tuesday, said Steve Schaefer in Forbes. The battered markets were “soothed” by Federal Reserve Chairman Ben Bernanke’s semiannual testimony before the Senate, in which he eased concerns that the U.S. would nationalize banks and said that the U.S. economy should “show signs of recovery in 2010, if the financial system is stabilized.”

The part about the recession ending late this year sounds pretty optimistic, said Andrew Leonard in Salon, but only if you ignore Bernanke’s “giant, honking, humongous, get-down-on-your-knees-and-pray-for-salvation ‘if.’” For any hope of a 2010 recovery, the government's intervention—including the Obama team’s nebulous bank rescue plan—needs to work.

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