Ben Bernanke: “It would be very concerning for financial markets and, I think, for the general public if the United States didn't pay…”

Let me just say that we are quite aware of these portfolios, and we are addressing them in at least two ways.

The political challenge is to figure out how to do that.

Large deficits in debt over a long period of time raise interest rates above levels where they normally would be and crowd out private investment and are bad for growth and productivity.

The economy needed help from Congress--if not from additional spending (on roads and bridges for example), then at least in areas such as retraining unemployed workers.