What kinds of things did Ben Bernanke mention in his speech to the Council on Foreign Relations?
Good, question. As I remember Ben Bernanke mentioned that not only is the United States of America’s economy in turmoil but the whole world is suffering through one of the worst financial crisis since the 1930s. He also stated that governments around the world should continue to take coordinated actions to restore financial market functioning and the flow of credit. I agree with Bernanke’s statement 100% but he should have that that about the United States in my opinion because until we stabilize the financial system, a sustainable economic recovery will remain out of reach. Another thing I thought was really interesting is when he talked about regulation and supervision in the financial institutions . I found it quite amazing seeing as nobody is supervising AIG “TARP” funds, nor the any of the other $700 Billion Dollars.
Bernanke’s Speech to the Council on Foreign Relations Ben Bernanke Council on Foreign Relations, Washington, D.C. Financial Reform to Address Systemic Risk The world is suffering through the worst financial crisis since the 1930s, a crisis that has precipitated a sharp downturn in the global economy. Its fundamental causes remain in dispute. In my view, however, it is impossible to understand this crisis without reference to the global imbalances in trade and capital flows that began in the latter half of the 1990s. In the simplest terms, these imbalances reflected a chronic lack of saving relative to investment in the United States and some other industrial countries, combined with an extraordinary increase in saving relative to investment in many emerging market nations. The increase in excess saving in the emerging world resulted in turn from factors such as rapid economic growth in high-saving East Asian economies accompanied, outside of China, by reduced investment rates; large bu
