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WSJ headlines and questions for January 18 2012(1)

WSJ headlines and questions for January 18 2012(1) - WSJ...

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WSJ headlines and questions January 18, 2012. WSJ Headline January 13. Little Alarm Shown at Fed at Dawn of Housing Bust and Governor Cautioned Fed About Mortgages Over 1,000 pages of transcripts of Federal Reserve meetings during 2006 were recently made public and show relatively little concern about the bursting of the housing bubble that was beginning at that time. Housing price inflation slowed and became deflation in May 2006, and prices have dropped 33% since that time. Ben Bernanke, who had been recently installed as Chairman, expressed little concern. In March and May, he said that “we are unlikely to see growth derailed by the housing market.” and he described the cooling of the housing boom as a “healthy thing.” At the end of 2006, he predicted a “soft landing” for the economy. Susan Bies, a Federal Reserve governor and former banker, and others, however, did sound some alarm bells, pointing to households that were overextended into debt and
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