1/6/2010

Federal Reserve Chairman Ben Bernanke said recently that the link between the central bank's monetary policy, including low interest rates, and the housing bubble was "weak." A number of critics, including economists, commentators and politicians, are scrutinizing the comment. "He was completely wrong in his assessment of what created the housing bubble," said Peter Schiff, a Connecticut Senate candidate. "He basically said that the low interest rates from the Federal Reserve had nothing to do with it. He said it was the proliferation of adjustable-rate mortgages or interest-only mortgages."

Full Story:
Hill, The

Related Summaries