Tuesday, March 11, 2008

The Fed is always optimistic

Not quite standard broken window fare, but relevant still relevant to the law of unintended consequences.

Bernanke: Subprime hit could top $100B
July 19 2007: 4:44 PM EDT

NEW YORK (CNNMoney.com) -- Losses in the fast-unraveling subprime lending market could top $100 billion, but the Federal Reserve is taking measures to protect borrowers, according to Fed Chairman Ben Bernanke.

"The credit losses associated with subprime have come to light and they are fairly significant," Bernanke told the Senate Banking Committee in a second day of testimony on the Fed's twice-yearly economic report.

"Some estimates are in the order of between $50 billion and $100 billion of losses associated with subprime credit problems," he said, referring to a segment of the mortgage market that caters to borrowers with shaky credit.

Subprime losses won't top $500 billion: Bernanke
Thu Jan 17, 2008 11:52am EST

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that losses in the U.S. subprime mortgage market may have reached $100 billion so far and could climb, but would not top $500 billion.

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