Bernanke Says the Economy is Improving

Today, Ben Bernanke indicated that he thinks the economy is improving. Indeed, the Fed chair expressed his belief that the economy is on the track for recovery — but that it is a slow process. He believes that we have passed the worst of the recession. While that doesn’t mean that we are in the midst of a recovery, it does mean that recovery could be on the way. However, the recovery from the worst recession since the Great Depression won’t happen over night. Indeed, most economists think that we will see a rather flat period before seeing substantial growth. They expect that the economic recovery will look a lot like the letter U.

For you, though, this might mean some relief. Unemployment, though still growing, appears to be doing so at a slower pace. There is hope that layoffs will be reduced, and that more Americans can keep their jobs. Additionally, the low interest rates and government programs make now a good time for you to refinance and save money on your mortgage. And with tax credits and low prices, it has never been better to be a first time homebuyer.

What one hopes, however, is that optimism over a possibly coming economic recovery doesn’t result in recklessness in personal finances. The recession has taught most of us to be careful with our money, to save it and to plan for our expenses. Hopefully, as economic recovery begins its slow march forward, it will move in such a way as to help us cement habits of frugality and saving.

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