Bankruptcies have made us stronger

Posted by Kenny Hernandez

A lot of questions have been asked about where the economy is right now. Whether it is healthy and whether we are out of the recession seem to be the most prevalent questions. Ben Bernake, Chairman of the Fed, has said that he believes we are no longer in a recession and the economy is growing. How fast the economy is growing and challenges that lie ahead of us, however, are still very unclear.

Warren Buffet has been quoted as praising the US government and their actions to weather the financial storm that was caused by the meltdown of many banks and large financial services companies. Buffet also went as far as to say that Ken Lewis may have inadvertently helped save the financial system when Bank of America bought Merrill Lynch.

Nevertheless, with all these events that occurred, it can be said the economy will come out better than it was before the recession. It is hard to believe with the unemployment being around 9.7% but one thing that the economy has now that it didn’t really have before is fear. Fear will allow us to save more in anticipation of another catastrophic market meltdown as well as better mitigating risk, even when times are going well.

http://money.cnn.com/2009/09/15/news/economy/Buffett/index.htm

http://money.cnn.com/2009/09/14/news/economy/lehman_brothers_anniversary.fortune/index.htm

http://money.cnn.com/2009/09/15/news/economy/Bernanke_economy/index.htm