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Overview: Mon, May 20

Bernanke, Ben

Tuesday, 10 February 2009

On prices of housing and the like, we're not trying to prop up the price of housing. What we're trying to do is get the credit markets working again so that the free market can begin to function in a normal way instead of in this seized-up way in which it's currently acting.

And, finally, on price fixing of so-called toxic or legacy assets, the plan that Secretary Geithner described this morning, would have as an important component private asset managers making purchases based on their own profit-maximizing analysis. So that would be true market prices that would free-up what is now a frozen market and get transactions flowing again and should restore real price discovery to those markets.

 

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