I am extremely happy that Ben Bernanke, Chairman of the U.S. Federal Reserve has finally grown a conscience or no longer fears the Bush/Cheney clan. My prayers are finally being answered, thank you God. All I can say right now [because frankly I AM speechless at the news I'm reading], is that I am soooooo happy Ben is FINALLY speaking the TRUTH about our economic situation. The American public deserves to know the TRUTH!
Although I am happy that you are finally being honest Ben about our situation, you now find yourself in panic mode, begging everyone you have been financially spoon feeding (the Banksters) for the past year and it may already be too late to curb the economic onslaught to come. You Ben, Hank Paulson, George Bush, and the Banksters together have may this BED [filled with corruption, greed and fraud] that we must all sleep in now. What was the point in having regulators if they were NEVER going to REGULATE! The roaring 2000's is OVER, imagined WEALTH (un-realized gains) is OVER! Debt never and will never equal real WEALTH! I have taken the following from Bloomberg.com click the link at the title below to read the entire article.
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By Scott Lanman and Alison Vekshin
May 6 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke, seeking to end the worst housing slump in a quarter century, urged the government and mortgage lenders to intensify their efforts to avoid home foreclosures.
Bernanke, in a speech in New York yesterday, also reiterated his call for lenders to forgive portions of mortgages for some struggling homeowners. He said proposals should be ``tightly targeted'' at borrowers at greatest risk of losing their properties, and avoid providing an incentive for defaults.
The Fed chief also backed the idea of having the Federal Housing Administration refinance troubled mortgages, a concept included in Democratic legislation in Congress, without explicitly endorsing the bill. His remarks indicate a gap with the Bush administration, which has preferred to rely on industry-led efforts.
Bernanke also reiterated his call for a stronger role for Fannie Mae and Freddie Mac, the government-chartered companies that are the biggest sources of money for U.S. mortgages, to ease the crisis.
It's an ``especially appropriate time'' for Fannie Mae and Freddie Mac to ``move quickly to raise significant new capital'' to aid the housing market, he said.
He didn't comment on the outlook for interest rates in his speech, his first since the Federal Open Market Committee met last week. The panel on April 30 cut the benchmark interest rate by a quarter point to 2 percent, and signaled it may take a breather after seven reductions.
Bernanke did note that accelerating foreclosures may push home prices down further, hurting the broader economy and threatening the financial system. He anticipated the foreclosure rate will increase this year after such proceedings began on 1.5 MILLION PROPERTIES last year.
A quarterly Fed survey yesterday showed the share of banks making it tougher for companies and consumers to borrow approached a record last month in the aftermath of the subprime mortgage collapse. The Senior Loan Officers' Survey found a net 70 percent of banks increased their loan rates over their cost of funds.
In the past, typical approaches to helping homeowners included temporary repayment plans or folding missed payments into the principal balance, Bernanke noted yesterday. That may not work in the current crisis, he said.
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