Bernanke on economic and financial conditions

Ben Bernanke, the chairman for the Federal Reserve, set out the reasoning behind policies towards Fannie Mae and Freddie Mac, Lehman Brothers, AIG as well as the Treasury bailout in a speech to the National Association for Business Economics.

"These are momentous steps," Bernanke said "but they are being taken to address a problem of historic dimensions. In one respect, however, we are fortunate. We have learned from historical experience with severe financial crises that if government

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