Bush says “Economic Panic” Easing.., Bernanke says Economy facing “Very Serious Slow down”…Is the famous “Denial Bubble” at work..?

During a meeting with the business leaders in Louisiana, the U.S President George BushGeorge Bush presented an optimistic perspective to the current economic turmoil by saying that people’s attitude towards economic conditions have changed from “near panic” to a “more relaxed” approach.

He said, “I have heard that people’s attitudes are beginning to change from a period of intense concerns – I would call it near panic to being more relaxed.” According to him, this ease in attitudes has come forth due to the effects of the huge bailout agreed with the congress to sustain the financial system.

Earlier, the U.S Federal Reserve chief Ben BernankeBen Bernanke had said that more government spending may be required t combat the economy weakening crisis. He told the U.S House of Representatives budget committee that a fresh round of stimulus will be a good idea at this stage.

Although Bernanke stopped short of saying that American economy is in recession, his words somewhat hinted that what is not said blatantly, may very well be true, “We are in a very serious slowdown in the economy which has very serious consequences for the public. Whether it is called a recession or not is of no consequence.”

President Bush accepted to favor the second round of stimulus at the end of the meeting with the business leader in Louisiana. In response to a reporter’s question regarding the fresh stimulus, Bush said that he supported the second stimulus package proposed by chairman Bernanke.

The Bush administration has been resisting the democratic proposals for a second round of checks from the government to the tax payers but Perino said that the objections were related to the specific elements of the proposed programs.

After the President’s meeting with business leaders, Dana PerinoDana Perino has said that the tax payers could expect a return on the enormous sums of money the government is planning to pump into banks to ease a credit crisis. Perino believes that the government will be able to get most of the people’s money back, and this he says with confidence because the government is really making investments to attain this goal.

He further said that that many people are wondering why a “free-market-oriented president” was putting government money in to buying shares in private-sector banks. The answer to this, according to him is the magnitude of the crisis gripping the country, and still has a firm grip on the country.

A series of crises in the housing, credits and financial sector has seriously hit the economy. While some analysts believe the economy is already in recession, others are forecasting that the U.S economy will be further shrinking later this year and early next year, which will meet the classic definition of recession.

The point of concern is whether or not, the so-called “crisis” quoted by Perino, and “serious slowdown in economy” assumed by Bernanke is a concealed term for “that which must not to be named” – Recession..?