Fed: Regulation 1st defense against speculation

[FreakinDJ]

Fed: Regulation 1st defense against speculation

Fed boss: Regulation is 1st defense against speculative excess, doesn't rule out higher rates


WASHINGTON (AP) -- Stronger regulation is the best way to prevent financial speculation from getting out of hand and throwing the economy in a new crisis, Federal Reserve Chairman Ben Bernanke said Sunday.

But he didn't rule out higher interest rates to stop new speculative investment bubbles from forming.

The Fed chief's remarks were his most extensive on the subject since the housing market's tumble led to the gravest financial crisis since World War II -- and perhaps the worst in modern history, in his view.

Critics blame the Fed for feeding that speculative boom in housing by holding interest rates too low for too long after the 2001 recession.

http://finance.yahoo.com/news/Fed-Regulation-1st-defense-apf-3767458572.html?x=0&sec=topStories&pos=3&asset=&ccode=

[OnceUponTimeOnTheNet]

1. K&R.

[DJ13]

2. He really really really really really really

....wants to keep that cushy job, doesnt he?

Just like any other politician, say what you know they want to hear with no intention of following through once you have the office.

[sam sarrha]

3. how about a heavy "No-Value added Tax" on speculation..99%,.. the bottom 80% of Americans own 7% of

of Americas wealth, 74% of debt.. why reward a thief for raising the price of every essential product.?

[sandnsea]

4. That's a great idea

The 99% is too steep, but the "No Value Added" is the exact frame to replace "Capital Gains". They really don't add any value, all these products will get produced with direct investment, like they used to.