August 26, 2009

Economists: Recovery is at hand

The reappointment of Ben Bernanke as Federal Reserve chairman and positive home price and consumer confidence reports point toward a recovery, economists say.

The nation seemed on the brink of a second Great Depression last fall with the collapse of the Wall Street investment firm Lehman Brothers, but even though many ordinary people won't see signs of recovery yet, economic indicators are pointing to the end of recession, USA Today reported Wednesday.

Bernanke deserves a significant amount of credit for ending the recession, Mark Zandi, chief economist at Moody's Economy.com, told the newspaper. If he hadn't acted as aggressively and creatively as he did, we would still be in a recession, and we'd be talking about a depression.

Even with the hopeful signs, analysts said the economy has a long climb ahead of it, with the Congressional Budget Office predicting economic output will fall 1 percent this year and unemployment will break double digits at 10.2 percent in 2010.

We've had some nice, pleasant upbeat reports, Standard & Poor's economist David Blitzer said. We could haggle over whether it's June, July or August that the recession ends.