An economic policy that seems to be working, at least with regard to expectations the U.S. economy will recover sooner rather than later, was spelled out in the Federal Reserve Chairman's testimony before Congress about three weeks ago. Regardless of all the statistics and formulas, theorising and prognostications, the 2010 financial reform bill will asssure some things in the future: That the abuses of private bankers do not end up being paid for by the state, and through other rules that they not be allowed to string their financial wagons together (another abuse as shown by the 2008 crisis.) Other provsions of the new rules call for federal oversight and approval of some aspects of daily banking operations, but these items should not take away from the ordinarily streamlined running of the financial system, given its reliance on powerful information systems.
There are indications as well in the overall economy, apart from the financial sector, including expectations for continued price stability and indicators as provided from analysis of treasury rates that the Federal Reserve Chairman deserves credit for, insofar as these measures are prominent in recovery conditions. Not the least to mention is consumers will not any longer, at least not for the foreseeable future, be able to pay off the mortgage with gains, and policies will principally discourage the type of highly - leveraged mortgage underwriting characterised by the last housing and related real estate finance boom. Economic values as they are preached now might entirely have gone back to the virtues of saving and socking away cash apart from fancy investment vehicles as promoted through the local money store.
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