With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.
BEN BERNANKEThe economist John Maynard Keynes said that in the long run, we are all dead. If he were around today he might say that, in the long run, we are all on Social Security and Medicare.
More Ben Bernanke Quotes
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If I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term price stability as monetary policy’s greatest contribution to general economic prosperity and maximum employment.
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The people who best use their advantages, or overcome adversity, and work honestly are those most worthy of admiration.
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I am very proud of my nerd-dom.
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A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily.
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While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.
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September and October of 2008 was the worst financial crisis in global history, including the Great Depression.
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The Federal Reserve is not currently forecasting a recession.
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If you are asking me if I would advocate that the Chinese go to greater flexibility in their exchange rate, I certainly would.
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Economics is a very difficult subject. I’ve compared it to trying to learn how to repair a car when the engine is running.
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The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.
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The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.
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If Wall Street crashes, does Main Street follow? Not necessarily.
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If you are not happy with yourself, even the loftiest achievements won’t bring you much satisfaction.
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Not all information is beneficial.
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The more guidance a central bank can provide the public about how policy is likely to evolve the greater the chance that market participants will make appropriate inferences.
BEN BERNANKE