"Fed Head" Ben Bernanke Has Gone Nuts: "More Home Foreclosure Equals More Demand"

May 18 (EIRNS)--Federal Reserve Chairman Ben S. Bernanke, speaking yesterday at the 43rd Annual Conference on Bank Structure and Competition at the Chicago Federal Reserve Bank, reviewed the increasing mortgage delinquencies of home loans, but concluded that there will be no consequential effects on the economy, and moreover, there should be no regulations imposed that might "inadvertently suppress responsible lending."

Using Fed Reserve-speak, Bernanke stated in his prepared speech, "We are likely to see further increases in delinquencies and foreclosures this year and next as many adjustable-rate loans face interest-rate resets. All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system..."

Yes, ingenious, with millions of Americans thrown from their homes onto the street, this will never show signs of a collapsing economy. Bernanke's nearly perfect SAT score is really showing signs.