The decline in home equity makes it more difficult for struggling homeowners to refinance and reduces the financial incentive of stressed borrowers to remain in their homes.

I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.

Deflation is defined as a general decline in prices, with emphasis on the word 'general.'

Developments in financial markets can have broad economic effects felt by many outside the markets.

The financial crisis that began in the summer of 2007 was an extraordinarily complex event with multiple causes.

I think policy is currently quite accommodative. I think it can remain quite accommodative for a while to come.