As a special tribute to the present fed chairman and his excellent analysis/foresight of the housing market, we thought SD readers could reminisce for a few minutes on his past guidance. We present to you,
SD's Top 7 Reasons to Listen to What Mr. Ben Bernanke has to Say on the Housing Market (in chronological order)
1. "We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though." July, 2005
2. "House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals." October, 2005
3. "Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise." February, 2006
4. "Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low." February, 2007
5. "At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency." March, 2007
6. "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." May, 2007
7. “They (Fannie Mae & Freddie Mac) will make it through the storm." January 2008, Two months prior to Fannie Mae and Freddie Mac Collapsing
For a list of Ben's top 30 quotes visit the economiccollapseblog here
