We want to have market discipline. We want to lenders to, large firms to believe that they can fail and therefore to take due care to make sure that the firms they are lending to are not taking excessive risks.
Bernanke advocates for market discipline to prevent excessive risk-taking.
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I know you are trying, and I hope that you can find the agreement to see these important objectives.
A significant portion of this effect is related to the automatic spending sequestration that is scheduled to begin on March 1st.
The challenge for the Congress and the Administration is to put the Federal budget on a sustainable long-run path that promotes economic growth and stability without unnecessarily impeding the current recovery.
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.
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