Video: Ben Bernanke Interview on 60 Minutes – Depression Averted, Recovery Soon
Filed under: Bailout Bill, Ben Bernanke, Recession, U.S. Economy, U.S. Financial Crisis
Bernanke on 60 Minutes Part 1:
Bernanke on 60 Minutes Part 2:
Finally, Bernanke Tells Us How He Really Feels …
Filed under: Bailout Bill, Ben Bernanke, U.S. Economy, U.S. Financial Crisis
From Bloomberg Tuesday afternoon:
“If there is a single episode in this entire 18 months that has made me more angry, I can’t think of one other than AIG,” Bernanke told lawmakers today. “AIG exploited a huge gap in the regulatory system, there was no oversight of the financial- products division, this was a hedge fund basically that was attached to a large and stable insurance company.”
Bernanke’s comments foreshadow tougher oversight of systemically important financial firms, and come as President Barack Obama seeks legislative proposals within weeks for a regulatory overhaul. The U.S. government has had to deepen its commitment to prevent AIG’s collapse three times since September as the company accumulated the worst losses of any U.S. company.
The company “made huge numbers of irresponsible bets, took huge losses, there was no regulatory oversight because there was a gap in the system,” Bernanke said. At the same time, officials “had no choice but to try and stabilize the system” by aiding the firm.
AIG is getting as much as $30 billion in new government capital and relaxed terms on its bailout announced yesterday.
Full Text: Ben Bernanke Testimony on Economy and Federal Budget, March 3
Filed under: Banking, Ben Bernanke, Recession, U.S. Congress, U.S. Economy, U.S. Financial Crisis
(Source: Board of Governors of the Federal Reserve System)
As Prepared for Delivery
Chairman Conrad, Senator Gregg, and members of the Committee, I am pleased to be here today to offer my views on current economic and financial conditions, the federal budget, and related issues.
Recent Financial and Economic Developments and the Policy Responses
Over the past 18 months, the global economy has experienced a period of extraordinary turbulence. The collapse of a global credit boom, triggered by the end of housing booms in the United States and other countries and the associated problems in mortgage markets, has led to a deterioration of asset values and credit conditions and taken a heavy toll on business and consumer confidence.
Full Text: Fed Chairman Bernanke Testimony to Senate Banking Committee – Feb. 24 – Monetary Policy Report to Congress
Filed under: Ben Bernanke, U.S. Economy, U.S. Financial Crisis
(Source: Board of Governors of the Federal Reserve)
Chairman Dodd, Senator Shelby, and members of the Committee, I appreciate the opportunity to discuss monetary policy and the economic situation and to present the Federal Reserve’s Monetary Policy Report to the Congress.
Recent Economic and Financial Developments and the Policy Responses
As you are aware, the U.S. economy is undergoing a severe contraction. Employment has fallen steeply since last autumn, and the unemployment rate has moved up to 7.6 percent. The deteriorating job market, considerable losses of equity and housing wealth, and tight lending conditions have weighed down consumer sentiment and spending.
Federal Reserve’s Emergency Actions Need Exit Strategy or Economy Suffers More
Filed under: Ben Bernanke, Recession, U.S. Economy, U.S. Financial Crisis
You should read this story out on the Reuters wire today regarding the $1.3 Trillion the U.S. Federal Reserve has thrown at the financial markets over the last year. It’s lede:
NEW YORK (Reuters) – When U.S. central bankers eventually move to wean markets off the emergency support put in place to rescue the economy, they will face the difficult and delicate task of timing it right.
If they wait too long, they risk sky-high inflation or another asset bubble. If they move too fast, they risk undermining any incipient economic recovery.
Even against the current backdrop of a miserable economic outlook and the specter of deflation, a growing number of voices are warning that the Federal Reserve needs a clear and credible exit strategy for its unprecedented policies.
You may also want to refer to this post regarding the emergency support actions the Fed has taken recently.
If the Fed doesn’t get this right we may be in store for a longer recession, hyper-inflation or the collapse of yet another economic bubble.
Text: Ben Bernanke Testimony to House Financial Services Committee | November 18, 2008
Filed under: Bailout Bill, Ben Bernanke, U.S. Congress, U.S. Economy, U.S. Financial Crisis
