2008-05-14 Bernanke's Federal Reserve Freakout

2008-05-14 \US economy\Ben Bernanke\US Federal Reserve http://www.alternet.org/workplace/85364/ Bernanke's Federal Reserve Freakout &ldquo;Spooking Bernanke is the Fed's discovery that many thousands of delinquencies are not caused by unemployment or even, perhaps, inability to keep up with payments but rather by the quick, steep drop in the price of real estate. "Sharp declines in house prices, and thus in homeowners' equity, reduce both the ability and incentive of homeowners, particularly those under financial stress for other reasons, to retain their homes," he said.&rdquo;   