Federal Reserve Chairman Ben Bernanke said Thursday that banks' overly tight lending standards may be holding back the U.S. economy by preventing creditworthy borrowers from buying homes.
Some tightening of credit standards was needed after the 2008 financial crisis, but "the pendulum has swung too far the other way." Bernanke said. Qualified borrowers are being prevented from getting home loans, he said during a speech to the Operation HOPE Global Financial Dignity Summit in Atlanta.
Operation HOPE is a non-profit organization that provides free economic education and financial counseling to lower- and middle-income Americans.
Friday, November 16, 2012
Bernanke wants banks to loosen their lending/credit standards.
Oh sure, lets do the same dumb shit that got us into this mess in the first place to create yet another illusionary credit bubble.