Video Roundup: Latest From Jackson Hole
Here are the latest video reports from Jackson Hole, Wyo., where Federal Reserve Chairman Ben Bernanke said that the central bank is prepared to act "as needed" to help provide liquidity to the financial system but won't bail out investors who made bad decisions.
Richard Green, professor of finance at George Washington University, was not heartened by Bernanke's speech. "His remarks didn't change my outlook," he said.
"The housing sector is still in trouble, the subprime loans that originated are just bad loans. Until those are washed out of the market, they are going to have an overhang effect effect on the market," Green believes. "I'm still pessimistic...about the next couple of quarters," he added.
Ethan Penner, principal at Lupert Adler, agreed: "A couple of weeks ago, the Fed lowered the discount rate, everyone was a little bit euphoric and the market rallied." But "the very next day," his colleagues' portfolios of unsold bonds "were still sitting there."
"I don't think it's in the Fed's capacity to resolve this problem; [only] the market will solve this problem" given enough time, Penner said.