Thursday, September 20, 2007

Shorter Bernanke (9/20/07)

Ben Bernanke testified today before Barney Frank's House Committee on Financial Services. Like his last speech, the testimony is mostly recycled.

Here's the short version (paraphrasing just a little):

Subprime's a mess, especially ARMs. Regulators are trying to help to prevent unnecessary foreclosures, but we think raising GSE conforming loan limits is a bad idea.

Oh, btw, financial markets are pretty stressed; we didn't want it to spill over, so we cut interest rates.
That pretty much covers it.

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