Quoting the Crisis22/09/2009
“ All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity and growth in jobs and incomes should help keep the financial obligations of most households manageable. „
Ben Bernanke, Chairman of the Board of Governors of the US Federal Reserve, in May 2007 in Speech at the Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition (PDF)
Quote posted at 23:12
