Market Overview

Ben Bernanke Explains The Importance Of Credit

Share:
Ben Bernanke Explains The Importance Of Credit

  • Ben Bernanke was a guest on this past Sunday’s Wall Street Week.
  • The former Federal Reserve chairman went into several issues, including his long-term outlook for interest rates, the evolving role of the Fed and personal musings.
  • Of particular interest were his tidbits of wisdom regarding the importance of credit.
  • In a wide-ranging conversation, Ben Bernanke, this week's Wall Street Week guest, went into several issues including the importance of credit. “Credit is critical; you can’t make an economy work without credit,” he emphasized.

    In fact, as an academic, the former Fed chairman studied debt and, he explained, during the financial crisis, his concern was that credit would freeze, making people unable to get loans (or any kind of financing) if they needed one.

    Related Link: Is There A Difference Between Good Debt And Bad Debt? Larry Summers Shares His View

    The American Dream

    Bernanke then went into borrowing as an essential part of the American Dream. There’s a misconception about borrowing, he explained, “People talk about borrowing as a bad thing [and, yes,] sometimes it is a bad thing. But if you create an asset, if you create a business, if you buy a house, if you get an education [...] if you do something that is going to provide income in the future, it could be a smart thing to do,” he concluded.

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain

    Posted-In: Ben BernankeAnalyst Color Opinion Federal Reserve Media

     

    Related Articles (FED)

    View Comments and Join the Discussion!

    Latest Ratings

    StockFirmActionPT
    ELMDDougherty & Co.Initiates Coverage On12.0
    MRNSCantor FitzgeraldAssumes7.0
    MNRLCapital One FinancialInitiates Coverage On23.0
    SONVertical GroupUpgrades
    UNPMorgan StanleyMaintains136.0
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Trading Daily
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Daily Analyst Rating
    A summary of each day’s top rating changes from sell-side analysts on the street.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

    EXCLUSIVE: Akebia CEO On Huge New Partnership Deal

    Vetr Crowd Loves Alibaba