if we are going to have a strong recovery, it has to be on the back of a stabilization of the financial system
Editor's note · Context
Bernanke emphasizes the need for financial system stabilization for recovery.
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Right now our concern is that the Chinese currency policy is blocking what might be a more normal recovery process in the global economy, and it is to an extent hurting our recovery.
GSE-type organizations are not essential to successful mortgage financing. Indeed, many other industrial countries without GSEs have achieved homeownership rates comparable to that of the United States. One device that has been widely used…
It is also important, of course, for community banks to be well-capitalized so that they can continue to lend during difficult periods.
Finding a way to deal with that issue I think is the most challenging part but has the biggest payoff.





