THE R WORD

Are we headed into a recession?

Today at 1:00pm Ben Bernanke will speak to the future of our nation. What can we expect as we await the speech from Federal Reserve Chairman?

Bernanke plans to address how"Wall Street managed to bounce back from a string of miserable sessions on Wednesday, lifting the Dow and S&P 500 more than 1 percent. But investors may move to the sidelines ahead of Bernanke's speech.
The central bank chief is due to speak about the housing market later in the day and his comments will be scrutinized for the Fed's latest view on the economy and interest rates. Also on the economic calendar are December same-store sales reports from retailers and a report on wholesale inventories." CNN MONEY

What we he hope he says is, lets fix this and don't run! Even if he says the R word is in sight, the nation needs to embrace it. Lowering the interest rates will give people the confidence to buy homes and invest.

In the past, the economists have dismissed the idea that psychology can dominate real economic forces. No matter how many downbeat headlines people read, the theory went, the outlook always comes down to basics such as jobs, incomes, and profits.

"But in today's economy, the past may no longer be prologue. That's because psychology does indeed have a huge impact on the stock market, and never before has the market played such a big role in real economic activity. It was market psychology more than fundamentals that drove technology share prices up so rapidly in 1998 and 1999. The resulting surge in wealth was the jet fuel that powered the growth rate of consumer spending and the economy into the 5% to 6% range, causing the Federal Reserve to put on the brakes." - Business Week By JAMES C. COOPER & KATHLEEN MADIGAN

We need to realize this is a confidence and national issue. The fear is crippling like that of terrorism, we feel out of control. The fact is we are in control. If we buy into this or if we run from the market and stop investing of course we will plummet. Ironically this specific issue has nothing to do with politics. It all about action.

Our Action!