Ben Bernanke's Speech at the Fed Meeting in Wyoming
The following link gives the full text of Ben Bernanke's speech from the Fed (includes all the references and footnotes) concerning the US housing market. The speech summarizes the current state of affairs, what the Fed is willing to do, and the history of the development of the capital markets supporting the US housing market. I did not think that the speech said anything new, but it seemed to excite the people on Wall Street.
The following paragraph was the most interesting from the speech concerning the "go-forward" perspective.
The incoming data indicate that the economy continued to expand at a moderate pace into the summer, despite the sharp correction in the housing sector. However, in light of recent financial developments, economic data bearing on past months or quarters may be less useful than usual for our forecasts of economic activity and inflation. Consequently, we will pay particularly close attention to the timeliest indicators, as well as information gleaned from our business and banking contacts around the country. Inevitably, the uncertainty surrounding the outlook will be greater than normal, presenting a challenge to policymakers to manage the risks to their growth and price stability objectives. The Committee continues to monitor the situation and will act as needed to limit the adverse effects on the broader economy that may arise from the disruptions in financial markets.