in News > Residential Mortgage
print the content item


Ben Bernanke has weighed in on the growing debate over the federal debt ceiling, arguing that the nation could do without it.

TheHill.com reports that the Federal Reserve chairman was asked for his views on the debt ceiling during an appearance yesterday at the University of Michigan. "It would be a good thing if we didn't have it," Bernanke said, adding that the current $16.4 trillion debt limit makes no sense in view of current federal spending. "This is sort of like a family saying, 'Well, we're spending too much, let's stop paying our credit card bill.'"

When asked if the debt ceiling had any value, Bernanke responded, "No, it doesn't really have - it's got symbolic value, I guess."

Bernanke also rejected a controversial proposal that would enable the U.S. Department of the Treasury to mint a $1 trillion coin and deposit it with the Federal Reserve, thus allowing the continued funding of the federal government.

"I'm not going to give that any oxygen," Bernanke said. "There are legal issues, there are policy issues - I don't think going in that direction would be very helpful."




Latest Top Stories

CFPB, FTC, States Take Action Against Foreclosure Relief Companies

The CFPB says the three companies collected a total of more than $25 million in illegal advance fees for foreclosure relief.


The 'Widespread Contagion' Of Foreclosure Is Now Contained

RealtyTrac says in its midyear report that foreclosure activity has dwindled back down to historic levels and that it is on track to continue the pace.


New Housing Finance Reform Bill Introduced In Congress

Three congressmen are taking a new crack at balancing public and private involvement in housing finance.


Julian Castro Confirmed As HUD Secretary

The 39-year-old, third-term mayor of San Antonio will replace current HUD Secretary Shaun Donovan, who will next lead the White House Office of Management and Budget.


'Middle Ground' GSE Reform Proposal Would Keep Fannie, Freddie Alive

Proposal provides an explicit government guarantee "but taxpayer money will be protected through adequate private-sector capital and accurate pricing of government reinsurance."

LenderLive_id1241
Hse SandyHook
Industry Resource
Orb Mobile
BSI_id
CMBA_id1228
Safeguard_id1295