http://money.cnn.com/2012/02/10/news/economy/bernanke_housing/index.htm?iid=SF_E_LN
On Friday, Ben Bernanke spoke before the National Association of Home Builders about how the struggling housing market is restraining the American Economy. This has limited the effectiveness of the Federal Reserve policies. One of the problems are that households with good credit are finding it difficult to obtain mortgages or refinance.
Bernanke cited some statistics and said that the declining home prices has resulted in more than $7 trillion in lost household wealth. The decrease in household wealth has decreased consumer spending between $200 billion to $375 billion.
Some suggestions that Bernanke offered was to turn foreclosed properties into properties that people can rent. But he said that this policy would be a "silver bullet."
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