Bernanke pressed on Dodd-Frank, energy, and housing on the Hill
Thursday, March 01, 2012 - 03:51
Federal Reserve Chairman Bernanke fields economic queries from members of Congress, including Reps. Ron Paul, Maxine Waters, Jeb Hensarling, Melvin Watt, and panel chairman Spencer Bachus.
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My what are my options. You know as much as I would like to do something with that they had I say the Fed's going to self destructive actually anyway when the money when the match is gone. But why why would we legalize. Competing currencies -- kid couldn't people. Save put this in a mattress and get 45 times much of the value and a few years. So the record. Of of of what you've done for the last six years is destroy the value of real money. On a Paper money at the same time real money is preserve. For so good to see you again a couple of nobody prevents you from. Holding talks over -- gold if you want to it's perfectly legal to do that. And -- also happy. That's also perfectly fine to. Hold other currencies say euros or yen or whatever else but so in that respect you can do that and and I've been happy to talk to you about that brought it mister chairman national money -- Mean when you pay taxes to buy a coin we have capital gains tax when it's not if you have to settle a lawsuit is always settled in. Depreciating Federal Reserve notes it's never settled in in the real contract so that's nothing new here money. And Europe and not talking about how. Homeowners can. Get out from under -- this foreclosure problem what are you suggesting we do to improve this housing market. One of the ideas that we discusses the movie Mario that is real estate owned 22 rental. That is something that the FHFA has -- a pilot program on -- put consent orders and all the major servicers requiring him to improve their practices their principal. Points of contact for individual borrowers to provide more counseling better controls and so on. By keeping rates artificially this low or to simply postponing it and exacerbating. The problem -- certainly agree with -- with you that. Monetary policy is not a panacea that it can help. Offset. Cyclical. Fluctuations in financial crises like we've had but the long term health of the economy depends mostly on decisions taken by congress administration. Is -- menu of possibilities. That we might consider. On the energy side. And I think the main problems there are coming from some supply disruptions of some feared the supply disruptions particularly I ran. Some think the best thing we could do would be to resolve that situation but obviously that's will be on my. My capacity -- -- -- and what's capacity. Will financial stability oversight council considers a threat to. Financial stability that the cost and complexity of Dodd-Frank poses to the financial system. And offer advice on how to minimize that cost and complexity. And how do you view the Fed's role in that process. At the Federal Reserve's level. You know we we support to basic goals of Dodd-Frank which are too. Create a more macro credential approach to supervision to make sure that we're looking for systemic risks as well as -- -- individual institutions. To make sure that our large institutions at more capital more liquidity -- better supervised although -- Key goals we understand that the specifics of the regulations make a lot make a big difference it's very important to make sure that we get the best result the least burden. And we have a process of both comments. Consultations. And of course a cost benefit analyses to try to make sure that we hear. Putting out rules that are on the when ineffective at reducing the risk of financial crisis but that. Minimize the regulatory cost particularly I would -- for the smallest. Of banks were at least able to. I deal with those cost.
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