Bernanke:"Recession Is Likely Over"

Well, it's clear the head of the Federal Reserve doesn't believe money supply growth impacts the economy.

Fed Chairman Ben Bernanke said this morning that the worst recession since the 1930s is probably over.

Bernanke said the economy likely is growing now, but it won't be sufficient to prevent the unemployment rate, now at a 26-year high of 9.7 percent, from rising.

"The recession is very likely over at this point," Bernanke said in responding to questions at the Brookings Institution.

It should be emphasised that he is saying this at a time money supply and credit growth have collapsed. Will he resign, if there is a double dip?

As for the speech itself, it was Ground Hog Day. Bernanke's speech at Brookings was identical to the one he delivered last month at a Fed conference in Wyoming.