Bernanke need to listen to Chris' latest podcast

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cat233's picture
Status: Platinum Member (Offline)
Joined: Aug 20 2008
Posts: 575
Bernanke need to listen to Chris' latest podcast

After reading this, I know Ben needs to listen to Chris' latest podcast.



Bernanke Urges ‘Strong Measures’ to Stabilize
Financial System

By Craig Torres

Jan. 13 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke warned that a fiscal stimulus won’t be enough
to spur an economic recovery and that the government may need to buy or
guarantee banks’ tainted assets to revive growth.

“Fiscal actions are unlikely to promote a lasting recovery unless they are
accompanied by strong measures to further stabilize and strengthen the financial
system,” Bernanke, 55, said in the text of a speech at the London School of
Economics. “More capital injections and guarantees may become necessary to
ensure stability and the normalization of credit markets.”

Bernanke’s speech indicates he sees further government aid to the U.S.
financial system as essential to an economic recovery. The U.S. Treasury has
already channeled $350 billion in taxpayer funds to recapitalize banks and other
financial institutions, while the Federal Deposit Insurance Corp. has guaranteed
principle and interest payments on $111.2 billion in bonds issued by financial

The Fed chairman recommended three approaches on troubled assets. Public
purchases of the bad assets are one possibility, as was originally planned under
U.S. Treasury Secretary Henry Paulson’s Troubled Asset Relief Program, the Fed chairman

The government could also agree to absorb, in exchange for warrants or a fee,
part of the losses on a specified portfolio of troubled assets, he said.
Regulators used that method recently with Citigroup Inc.

Another measure “would be to set up and capitalize so- called bad banks,
which would purchase assets from financial institutions in exchange for cash and
equity in the bad banks,” he said. Finally, efforts to reduce preventable
foreclosures “could strengthen the housing market and reduce mortgage losses”
and increase financial stability, Bernanke said.

The Fed chairman said the U.S. central bank still has powerful tools to
influence growth and prices.

joemanc's picture
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: Bernanke need to listen to Chris' latest podcast

Yes he does!


Watch this video from today, where he completely ingnores a question about Austrian economics(about :55) 

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