The Free Enterprise System Has Not Failed; The Financial System Has Failed.
Developments In Financial Markets Can Have Broad Economic Effects Felt By Many Outside The Markets.
The Financial Crisis Appears To Be Mostly Behind Us, And The Economy Seems To Have Stabilized And Is Expanding Again.
The Crisis In Europe Has Affected The Us Economy By Acting As A Drag On Our Exports, Weighing On Business And Consumer Confidence And Pressuring Us Financial Markets And Institutions.
I And Others Were Mistaken Early On In Saying That The Subprime Crisis Would Be Contained. The Causal Relationship Between The Housing Problem And The Broad Financial System Was Very Complex And Difficult To Predict.
September And October Of 2008 Was The Worst Financial Crisis In Global History, Including The Great Depression.
We Do Not Expect Significant Spillovers From The Subprime Market To The Rest Of The Economy Or To The Financial System.
Our Mission, As Set Forth By The Congress Is A Critical One: To Preserve Price Stability, To Foster Maximum Sustainable Growth In Output And Employment, And To Promote A Stable And Efficient Financial System That Serves All Americans Well And Fairly.
Importantly, In The 1930s, In The Great Depression, The Federal Reserve, Despite Its Mandate, Was Quite Passive And, As A Result, Financial Crisis Became Very Severe, Lasted Essentially From 1929 To 1933.
The Impact On The Broader Economy And Financial Markets Of The Problems In The Subprime Markets Seems Likely To Be Contained.
Do Not Leave Yourself Or Your Family Unprotected Against Financial Storms... Build Up Savings.
