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60 Minutes' Ben Bernanke Interview

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It's rare for an active Fed Chairman to give an interview, but according to Bernanke, he agreed to the interview because "it's an extraordinary time. This is a chance for me, I think, to talk to America directly." In case you missed the interview, it's available at the 60 Minutes webpage at cbsnews.com. Below are two interesting excerpts that savers may find interesting.

On the issue of letting the giant banks fail:

"Are you committing in this interview, that you are not going to let any of these banks fail? That no matter what their balance sheet actually looks like, they are not gonna fail?" Pelley asked.

"They are not gonna fail," Bernanke said. "But what we can do, should it be necessary, is try to wind it down in a safe way."

On the issue of inflation and interest rates:

"You've been printing money?" Pelley asked.

"Well, effectively," Bernanke said. "And we need to do that, because our economy is very weak and inflation is very low. When the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation."

Last Sunday 60 Minutes had another segment of interest to savers. They went behind the scenes with the FDIC during a recent bank closure (see post).

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Comments
9 comments.
Comment #1 by Anonymous posted on
Anonymous
What do you think he is going to say? Sure, Citi and Bof A might fail, yeah right!

This guy has been trying to sweet talk everyone since September of last year. You will never hear the truth when it comes to safety of a Bank.

1
Comment #2 by Anonymous posted on
Anonymous
Wasn't he the guy who testified our banking or financial or economic are strong ... a while back? Couldn't remember exactly what.

1
Comment #3 by Anonymous posted on
Anonymous
Yes, Bernanke and Bush said everything was great for months late last year.

1
Comment #4 by Anonymous posted on
Anonymous
Re Bush & Bernanke:

Well, duh, guess you've conveniently forgotten that Pris Dodd and Barney **** have been doing the same for years!

1
Comment #5 by vladimir (anonymous) posted on
vladimir
Get your I obama bond today. The only inflation protection. Too bad that the limit is $10K... ($5K on paper and $5K electronic)

1
Comment #6 by Anonymous posted on
Anonymous
What is an Obama bond? Never heard of them.

1
Comment #7 by Anonymous posted on
Anonymous
He is talking about an I-bond.

1
Comment #8 by Anonymous posted on
Anonymous
OK, thanks, I knew of I-Bonds. They existed for several years. Long before Oboma became our president.

1
Comment #9 by Anonymous posted on
Anonymous
Yes, I know.
I mispelled Obama. Being I can not edit my post of 4:37 AM, I am correcting it now.

1