Federal Reserve Bank Chairman Ben Bernanke is signaling interest rates could go up if a financial bubble grows. Bernanke also blames lax regulations not lower interest rates for the housing bubble. The lax regulation allows banks and mortgage lenders leeway for exotic loans and lower standards that people who should bought homes but did.
“We must be especially vigilant in ensuring that the recent experiences are not repeated,” Mr. Bernanke said in a speech Sunday at the American Economic Association’s annual meeting in Atlanta,GA.
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