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Wednesday, July 13, 2011

Analyzing Bernanke's Report to Congress

Ben Bernanke, the Chairman of the Federal Reserve, gave his semi-annual address to Congress about the economy and the financial state of America. One of the key points was that the Federal Reserve would be ready and prepared to encourage another economic stimulus if the economy remains stagnant. This assurance gave the economic markets more stability and growth. But what does that mean in the long run? Does that imply that financial institutions have the right to make riskier investments, because now they know they will be bailed out? One thing is certain, and that is that Bernanke's address significantly helped the gains in the Stock Market, with triple digit gains on the Dow Jones today.

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