The economy is ... draw your own conclusions

Bernanke: economy faces 'numerous difficulties' By JEANNINE AVERSA, AP Economics Writer WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress Tuesday the fragile economy is facing "numerous difficulties" including persistent strains in financial markets, rising joblessness and housing problems — despite the Fed's aggressive interest rate reductions and other fortifying steps. (Yahoo News)

Bush calls on Congress to act on housing, energy By TERENCE HUNT, AP White House Correspondent WASHINGTON - President Bush said Tuesday the nation's troubled financial system is "basically sound" and urged lawmakers to quickly enact legislation to prop up mortgage giants Fannie Mae and Freddie Mac. (Yahoo News)

Perhaps it is just me, but maybe the President and the head of the Federal Reserve Board should hire an image consultant. Or have lunch together because when the President says the financial systems is "basically sound" and the head of the Fed is saying "persistent strains," one has to begin wondering just who is telling the truth.

The business news is getting a lot of ink lately. The Dow Jones average is all over the house. Economic reports are generally less than stellar. Consumer confidence is somewhere between low and non-existent and yet we are not in a recession. Oil and thus transportation costs are up, which means there are increases in food and other goods. But there is no inflation. Real wages really have not increased in decades, most people are living so close to the margin that a minor unplanned financial issue has the potential of putting them out on the street, yet there is no real problem, everything is fine. Go about your business.

I cannot wait to here what the Treasury Secretary has to say...