 ... we have all on occasion been asked whether there's a bubble in the market for residential housing; ... whether household and firm balance sheets will remain strong when interest rates rise; what risks to the financial system are posed by the government-sponsored enterprises; and how Basel II and other regulatory developments are likely to affect the structure and profitability of the domestic banking system. One's inclination is to answer by painting a benign picture so as not to cause unnecessary public concern. On the other hand, financial conditions do change, and it's our collective responsibility both to monitor those changes and to communicate truthfully to the public what we see.
Ben Bernanke
Meeting of the Federal Open Market Committee on March 16, 2004. [ http://www.federalreserve.gov/monetarypolicy/files/FOMC20040316meeting.pdf ]
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