It seems that the know-nothing Senators are determined to send us into a recession. At least Bernanke is telling it to them in the strongest possible terms:
"The financial markets are in quite fragile condition and I think absent a plan they will get worse," Bernanke said.
Ominously, he added, "I believe if the credit markets are not functioning, that jobs will be lost, that our credit rate will rise, more houses will be foreclosed upon, GDP will contract, that the economy will just not be able to recover in a normal, healthy way."
Of course is he met with the same old crap from Senators that are really out of touch:
Dodd later spoke disparagingly of the administration's proposal. "What they have sent us is not acceptable," he told reporters after presiding over a lengthy Senate Banking Committee hearing at which Bernanke and Treasury Secretary Henry Paulson urged swift action by Congress.
Sen. Richard Shelby of Alabama, the panel's senior Republican, added, "We have got to look at some alternatives" to the administration's plan.
I have your alternatives Sen. Shelby: You don't pass the plan. Then credit markets seize up and borrowing costs go through the roof. Suddenly Americans can't buy a car or a house on reasonable credit. That fouls up the auto industry and the banking industry at the same time.
Then multiple large banks can't give out loans at reasonable rates and fail. Which drains the FDIC and causes multiple bank runs. Which in turn causes banks to refuse to give you your money in a timely manner. Which would retard consumer spending and hurt 2/3 of the American economy.
So Sen. Shelby you have the choice between passing the plan or a recession that might turn into a depression. It is just that simple. If the Congress does not pass this plan by Friday and recesses for the elections then you better be all cash and 20% gold because there is a good chance we will get a 1000 point drop some time next week.
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