Help The Consumer

Welcome Back!

This morning I found an article from the Associated Press stating...

"...the Federal Reserve Chairman Ben Bernanke has steadied Wall Street by telling Congress the recession might end this year. Bernanke predicted the economy is likely to keep contracting in the first six months of 2009. But he also said, "there is a reasonable prospect" the recession will end this year. He reports, and warns that a recovery will require getting credit and financial markets to operate normally."

What does this mean to the average consumer? The consumer's confidence spending index for February came in at 25 on a scale of 100. That is obviously well below expectations. These concerns attribute to unemployment rates on the rise, adjustable mortgages increasing, and the stock market remaining in an unstable position. The Home Owner Affordability and Stability Initiative has not been implemented. However, it will affect the consumers on many different levels. It is intended to keep people in their homes first and foremost. Further, it aims to lower monthly payments, thus it could change spending habits in a positive manner.

In an effort to get the credit and financial markets to operate normally the Treasury Department, the Federal Reserve, and other banking regulators said Monday that they could exercise an option to convert to government's stock in the banks from preferred shares to common shares upon results of a "stress test" of the banks the government has a stake in through TARP funds. The stress test will help the Treasury Department identify and weigh the toxic assets on the banks' books.

the President will address the U.S. congress this evening. It is important that all of us, as consumers, work to move forward and find solutions.

Renee Fogle
YourCreditCompany.com