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Bernanke Says Economy Will Not Suffer from Mortgage Delinquencies

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A continued flood of mortgage delinquencies won’t hurt the economy. That’s according to Federal Reserve Chairman Ben Bernanke.

In Chicago today Bernanke said we will see more delinquencies and foreclosures within the sub prime mortgage market. That involves loans made to high risk borrowers. Still, Bernanke remains optimistic.

BERNANKE: We do not expect significant spillovers from the sub prime market to the rest of the economy or to the financial system.

Bernanke promised the Fed would crack down on deceptive lending practices that harm consumers. But he did not detail any new regulations.

Instead, he said the Fed would hold hearings in the next few weeks.

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