“It’s not about helping banks, it’s about helping people. We cannot afford to govern out of anger, or yield to the politics of the moment.”
— President Obama, to Congress on Tuesday night. It was a speech obviously written for the suffering American populace. On Wednesday, Federal Reserve Chairman Ben Bernanke followed up by telling the House Financial Services Committee that at-risk homeowners need rescuing. “Some borrowers presumably knew what they were getting into,” Bernanke said. He added, “In many of these situations, we have to trade off the moral hazard issue against the greater good.” The National Association of Realtors revealed how bad things are: Sales of existing homes fell in January to their lowest levels in nearly 12 years. –Jessica Shambora
