After watching 60 minutes for the third time and knowing it is reasonable to assume government officials speak to each other through the media, we thought it interesting to point out a few items from Bernanke’s interview on 60 minutes, which aired one day prior to the announcement of tax cut extensions.
Here are a few items that caught our attention:
- Early in the interview Bernanke stated the unemployment rate may stay at current level for 4-5 years under current plans (this was a surprise to us and much longer than we remember hearing from any government official before)
- Further along in the interview he stated 40% of unemployed have been so for more than 6 months
- “Possible future recession, if we continue on current path, not likely, but high unemployment for extended period of time could turn for worse” Bernanke Quoted
- Inflation, if it arises can be controlled 100% (We worry of overconfidence, but at this point in the recovery, Bernanke’s statement was to exude confidence in our opinion)
- “Cutting the deficit should be done, but not now, we do not want to affect this and next years taxes/recover” Said in a quote near the end of the interview
You may ask what is the take away from this interview and why are we mentioning it?
The reason we point to these items and make the inference that government officials speak to each other through the media is for future reference. There may be a time in the future, when an official (the higher level the official, the more credible in our opinion) speaks to the media and important investing ideas may be garnered.
We will attempt to point out future media speaking, but in our opinion, this was a well thought out interview which may have had a swaying influence upon lawmakers. Keeping an ear out for legislative official public speaking may be helpful in the future, in our opinion.
Have a Good Day !