Study backs Greenspan's view on markets

Federal Reserve governor Ben Bernanke's speech on Thursday detailed research he has done into whether the Federal Reserve could have done more to prevent the stock market bubble of the 1990s, according to a report by Associated Press. Bernanke told a University audience that interest rates would have had to rise so much to deflate stocks that it would have led to a severe economic slowdown.

Source: Associated Press

The Federal Reserve could not have successfully pricked the stock market bubble