Bernanke: Regulation would have diminished housing bubble
By Gary Linnell
ProWEB Wire (Industry News)
Federal Reserve Chairman Ben Bernanke recently said that low central bank interest rates did not lead to the housing bubble, adding that better regulation could have held it in check.
"The best response to the housing bubble would have been regulatory, rather than monetary," he said. He added that attempts to deal with the bubble were "too late or were insufficient."
He said that the Fed is improving supervision of banks and has increased measures that will protect consumers of financial products.