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Friday, December 5, 2008

Fed Chair: Reducing Foreclosures is Critical

From Realtor Magazine Online, Daily Real Estate News December 5, 2008

Federal Reserve Chair Ben Bernanke asked the federal government Thursday to increase efforts to put an end to foreclosures because they are driving other economic problems.

"Weakness in the housing market has proved a serious drag on overall economic activity," he said. "Steps that stabilize the housing market will help stabilize the economy as well."

In a question-and-answer session after his speech at a Fed housing conference, Bernanke rejected the notion of federal support for declining housing prices.

"I don't think we would be either willing or able to target house prices," he said. "I think that would probably be an impossible thing to do given the size of the national housing market."

Instead, he suggested more support for the mortgage market so more people are able to borrow.

Source: The Associated Press, Jeannine Aversa (12/04/08)

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