Chairman Bernanke: The Crisis and the Policy Response

In a speech today at the London School of Economics, Fed Chairman Ben S. Bernanke stated that the global economy will recover, but the timing and strength of the recovery are uncertain. In addition, Chairman Bernanke stated that a continuing barrier to private investment in financial institutions is the large quantity of troubled, hard to value assets that remain on institutions' balance sheets. The Chairman went on to say that public purchases of troubled assets are a possibility.

Further, Chairman Bernanke indicated that efforts to reduce preventable foreclosures, among other benefits, could strengthen the housing market and reduce mortgage losses, thereby increasing financial stability.

Click here to view Chairman Bernanke's speech.

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