“Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.” WellsGrowthEconomyFinancialCongressMissionsCriticalEmploymentPreservesStabilityEfficientStableMaximumOutputFinancial SystemPrice Stability Author:Ben Bernanke
“September and October of 2008 was the worst financial crisis in global history, including the Great Depression.” WorstCrisisIncludingFinancialSeptemberOctoberGreat DepressionFinancial Crisis Author:Ben Bernanke
“The crisis in Europe has affected the US economy by acting as a drag on our exports, weighing on business and consumer confidence and pressuring US financial markets and institutions.” ActingEconomyEuropeCrisisInstitutionsFinancialConsumersAffectedDragWeighingFinancial MarketsConsumer Confidence Author:Ben Bernanke
“The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.” LongEconomicLessonsCrisisFinancialRecoveryFinancial SystemEconomic Recovery Author:Ben Bernanke
“Importantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933.” ResultsCrisisFinancialDespitePassiveReservesSevereMandatesGreat Depression1930sFederal ReserveFinancial Crisis Author:Ben Bernanke
“Developments in financial markets can have broad economic effects felt by many outside the markets.” FeltEconomicEffectsDevelopmentFinancialBroadsFinancial Markets Author:Ben Bernanke
“There's no denying that a collapse in stock prices today would pose serious macroeconomic challenges for the United States. Consumer spending would slow, and the U.S. economy would become less of a magnet for foreign investors. Economic growth, which in any case has recently been at unsustainable levels, would decline somewhat. History proves, however, that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.” StatesTodaySidesGrowthChallengesLevelsUnitedCasesUnited StatesEconomyEconomicEffectsSeriousProtectProveSmartEconomicsFinancialSpendingFinanceConsumersInvestorsDeclineCollapseEconomic GrowthMagnetSide EffectsCentral BanksMacroeconomicsStock Price Author:Ben Bernanke
“Given the central role of effective, firmwide risk management in maintaining strong financial institutions, it is clear that supervisors must redouble their efforts to help organizations improve their risk-management practices...We are also considering the need for additional or revised supervisory guidance regarding various aspects of risk management, including further emphasis on the need for an enterprise-wide perspective when assessing risk.” NeedsHelpingStrongGivenEffortRolesPracticeClearRiskPerspectiveAspectOrganizationManagementInstitutionsIncludingFinancialVariousWideGuidanceEnterpriseConsideringEmphasisMaintainingRisk ManagementFinancial InstitutionsSupervisorsAssessing Author:Ben Bernanke
“With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.” UseIndividualSafetyInstitutionsFinancialSophisticatedIncentivesDerivativesFinancial Institutions Author:Ben Bernanke
“The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.” SeemsBehindsEconomyCrisisFinancialExpandingFinancial Crisis Author:Ben Bernanke
“The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.” ProblemSeemsEconomyImpactFinancialFinancial Markets Author:Ben Bernanke
“We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.” EconomyFinancialSignificantFinancial System Author:Ben Bernanke
“I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.” ProblemWould BeDifficultCrisisComplexesFinancialBroadsMistakenHousingFinancial System Author:Ben Bernanke
