Bernanke issues US economy warning

However, Bernanke says a greater premium attached to risk will help the US financial system in the long-term. Speaking before Congress’s Joint Economic Committee, Bernanke claimed the summer credit crunch was ultimately to blame for an economic slowdown as it has made it difficult for financial institutions and individuals to borrow money. Speaking before the committee, Bernanke says: "Investors have also become more cautious and are demanding greater compensation for bearing risk." He suggests the current crisis will help the financial system take a better approach to risk as it learns ...