Bernanke Calls for Regulation to Fight Future Bubbles

[jpak]

http://www.nytimes.com/aponline/2010/01/03/business/AP-US-Bernanke.html

WASHINGTON (AP) -- Stronger regulation should be the first line of defense against speculative bubbles that could send the economy into a new crisis, Federal Reserve Chairman Ben Bernanke said Sunday.

But he didn't rule out higher interest rates to stop dangerous bubbles, such as the recent one in housing, 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 housing bubble by holding interest rates too low for too long after the 2001 recession.

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[Captain Hilts]

1. Regulation is useless without OVERSIGHT. nt

[defendandprotect]

2. Re-regulate capitalism and financial markets . . . now! And, aggressive oversight -!!

[johnfunk]

3. Helicopter Ben to the rescue again! [... not.]

:yoiks::eyes::shrug::eyes::shrug::eyes::shrug::eyes::shrug::eyes:

[Goldstein1984]

4. Bernanke wants to be confirmed...

Unrecs?

[Odin2005]

5. Good!

Kick Greenshit's ass Ben!

[midnight]

6. I must say that I have no understanding of this bubble talk. Why does the economy

have to be manipulated with such talk. I love the way people start talking about products, tools, markets when they are trying to disguise fraud...