Don’t panic: the economy is still growing

Fed chairman Ben Bernanke pulled no punches when he gave his semi-annual report to Congress. “Sizeable losses at financial institutions . . . inflation has remained elevated . . . declining house prices... There’s more, but you get the idea. [snip]

Not that we will soon see the boom times that investors remember so fondly, or that homeowners can soon look forward to double-digit annual increases in the value of their homes - but it is possible that the woes that have beset the housing and financial sectors are about to be contained and mitigated...

Perhaps most important, the flexible American economy so far — and the “so far” is important — seems to be doing better than the troubled housing and financial sectors.

“The economy has continued to expand . . . Growth is expected to pick up gradually over the next two years..."

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