patrick.net

Favorite bit:

CNBC bimbo: ... What is the worst-case scenario if we were to see house prices come down substantially across the country?

Bernanke: I guess I don't buy your premise. It's a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. What I think is more likely is house prices will slow, maybe stabilize, might slow consumption a bit. I don't think it's going to drive the economy too far from it's full employment path though.

(later on "froth") I do think this is a localized problem and it's not going to affect the national economy.