The Real Deal Miami

Fed chair: loan crisis underestimated

November 24, 2008 12:39PM

Federal Reserve Chairman Ben Bernanke this weekend said the mortgage
crisis had far worse consequences than severe fallout in the financial
markets from risky mortgages, and said the government had
underestimated its effects. In an upcoming issue of the New Yorker
magazine, Bernanke said he and others were mistaken early on in saying
that the subprime crisis would be contained. The collapse of the
subprime market has contributed to serious damage to Florida’s economy.