Here are some notes from Bernanke’s testimony: Forecast due next week will show slower growth than prior forecast
- Need to be open minded about new mortgage measures
- Need to be sure private sector being aggressive in dealing with rising delinquencies
- still sees systematic risks for GSE’s
- says FNM and FRE need to raise more capital
- says it is likely there will be additional subprime writedowns by banks
Bernanke looks like he isn’t getting enough sleep. He looks nervous. He says it’s difficult to get proper evaluations on Level 3 assets. Says banks are well capitalized, but he’s worried about them not lending. Treasury Secretary Paulson and SEC Chairman Cox are also before Congress. They are all being grilled and this is not a very cheery group of people.
The dollar is selling down. The market is weak here, but the testimonies are almost done.
