Quotes from Ben S. Bernanke

and it might even be the key to preventing the economy from sliding back into recession.

Although austerity in the more troubled countries was probably unavoidable, given how indebted they were, it predictably pushed them deeper into recession.

We viewed some cooling in what had been an overheated sector as inevitable and even desirable.

which left it unprepared for the shock of the crisis.

But the crisis was too large and complex for one senator to solve, even a nominee for president.

I told her that I was frustrated by market participants' inability to grasp the plain English meaning of my statement.

We worried that one or both candidates would try to use the crisis for political advantage, complicating any potential deal in the Congress.

But I worried that, with no anticipated end date, it would be hard for us to stop buying without shocking the market.

I made clear that I thought the benefits of our securities purchases had so far outweighed the risks.

Steve's and my presentation proved wrong because we did not take into account the possibility that losses on subprime mortgages could ultimately destabilize both the U.S. and global financial systems.

I decided not to go. I didn't want to compromise the Fed's political independence by getting involved in the details of legislative disputes.

I found the decision hard to understand,

As the meeting approached, I worked to keep everyone on board.

I was puzzled, but shortly thereafter learned the reason.

Moreover, the nation's banks seemed ready to withstand any spillover from housing.

AIG FP's risk was compounded by the difficulty in valuing its highly complex positions,

McCain, despite having asked for the meeting, seemed unwilling to work actively for a solution.

and I didn't expect any meaningful economic damage.

When concerns about Thornburg's assets surfaced, nervous repo lenders began to pull back.

A wave of criticism followed,

He and his company were caught up in a panic not

But developing a cost-effective program, without being unfair to borrowers who had faithfully paid their mortgages, would take considerable time.

I never questioned Kevin's loyalty or sincerity. He had always participated candidly and constructively, as a team player, in our deliberations.

but I had learned an important lesson about the power that my words now carried.