Refishowcase Business & Finance

Officials from central banks around the world show high confidence that the worst financial crisis in 70 years has ended. They believe the global economic recovery began to appear.

“After having contractions for several years, economic activity seems to be stable in the United States (U.S.) and abroad. The prospect for growth in the near future will be better,” said Central Bank Governor of the U.S. (the Fed) Ben S Bernanke told the banking world in a symposium in Jackson Hole, Wyoming, USA, Friday (21 / or local time yesterday pm.

Bernanke’s statement is more meaningful than the Fed’s statement last weekend that mentioned the economic activity stops to stumble. Bernanke said U.S. economic conditions and other countries in the world shows a signal recovery from the abyss of recession because of the improvement of financial markets. However, he warned that economic growth will experience a slowdown in the foreseeable future.

According to Bernanke, although the fear of collapse of the financial sector to shrink, the crisis is still a challenge, especially the credit sector has not recovered.

“In many types of financial markets around the world, financial institutions and many household business continually experienced many difficulties gaining access to credit,” he said.

He continued, because of these factors, the economic recovery will be relatively slow at first. However, it will improve in the next stage, which is shown by decreasing the number of unemployed.

U.S. expected to show positive growth in the third quarter after a contraction in four consecutive quarters. France and Germany which is Europe’s largest economy was growing again in the second quarter. So does Japan’s economic re-grow for the first time in the last year.

Bernanke’s speech to the forum also contains many policy measures important in avoiding further deterioration.

Given the condition of two years back when the economic crisis, Bernanke said, without an aggressive policy and the balance from governments around the world, the economic panic in late October and will continue to increase throughout the world financial system would be very risky.

“Although we have avoided the worst, there are still other challenges,” Bernanke said that choosing to take the radical step when facing the biggest economic contraction in the world, including the desperate fix almost zero interest rates and pumping billions of dollars into the financial system.

He continued, his department must work together to ensure sustainable economic recovery. Disorotinya one that is important to build the framework of the new financial regulations as a lesson from the crisis and prevent similar incidents happening again. Bernanke said, in the U.S., the use of liquidity facilities the Fed has dropped sharply compared to early last year.

“Signals in the market shows weak liquidity pressures and market conditions return to normal,” he said.

According to him, the key is to overcome the crisis with liquidity risk management to ensure capital adequacy, credit markets, and risk management for the unhealthy financial condition. The same event this year was more lively than a year ago. At that time, Bernanke must strive to overcome various problems in the financial markets.

One week after the event was held last year, investment bank Lehman Brothers collapse. The next U.S. government to inject billions of dollars to rescue American International Group. In Wyoming eventdi that, in addition to Bernanke, speaking part of the European Central Bank President Jean-Claude Trichet. He reminded that did not appear excessive assumption that the world economy was back to normal.

“We still have to do many things,” he said, adding, would be a disaster if the policy holder in the world did not learn from the crisis.

Statement of Ben Bernanke about the U.S. economic recovery conditions are able to increase number of the leading index in the U.S. stock market. The Dow Jones rose 155 points and closed at 9500 levels. The Nasdaq composite index rose 31.68, or up 1.6% to 2020.90. Index The Standard & Poor? S 500 jumped 18.76, or 1.9% to 1026.13.

Record Houses

Coincided with Bernanke’s statement, news emerged that increasingly strengthen crisis situation has ended.

Based on reports the National Association of Realtors (the national association of real estate brokers) in the U.S., existing-home sales (homes that previously owned or built a house for a month before or also known as the home Resales / old house) rose in July, up four months in a row, for the first time in five years.

Existing-home sales jumped 7.2% in July to an annual periodic adjustments 5.24 million units in July, the biggest sale since the data began to be compiled in 1999. These sales exceeded the consensus average sales projections 5 million units.

“The report estimates that more than has been pushing the action in the stock market to buy,” Briefing.com analysts said in a note to clients.

“The report provides support that the housing market may have risen in terms of sales,” they said.

Economists said the disaster recovery in the housing sector, after the crisis erupted, is the key to attracting the world’s largest economy out of recession.