US Federal Reserve Chairman Ben Bernanke predicted that America's worst recession in decades will likely end this year and recover would gather steam next year.
As Bernanke said the "green shoots" of economic revival were already evident. He further said that no more big banks will fail. The US banking system needs to be stabilised in order for an end of the recession, which he predict to be by end of this year while recovery should begain next year.
Tough regulatory reform is needed on the financial system and to avoid the risk of an institution becoming too big to fail. The banks now are being subjected to a "stress test" by Treasury Secretary Timothy Geithner and his team to ensure they have enough money put aside to ward off new crises, the Fed chairman noted.
The world's biggest economy may have cited they are out of the woods soon, but we have yet to hear much of the Worlds No 2 economy, Japan, and upcoming star, South Korea. We can only hope no bad news are dished out by both countries.
Monday, March 16, 2009
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