Is Bernanke Parroting Lereah?
David 'the paid shill' Lereah has been busy cheerleading the housing market and downplaying any risks. A few weeks back Lereah stated:
"Lending problems in our nation's subprime marketplace are building, which could inhibit future housing activity and further dampen our forecast. Even so, these problems are likely to be contained and not spill over into the prime mortgage market."Just a week or so later Ben Bernanke, Federal Reserve Chairman, in a statement before the Joint Economic Committee, U.S. Congress, he stated:
At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency. We will continue to monitor this situation closely.Is our Federal Reserve chairman just taking the National Association of Realtors' talking points and incorporating them into his economic outlook?