http://www.federalreserve.gov/newsevents/speech/bernanke20080708a.htm

July 8, 2008

Instability in our financial system over the past year or so has importantly affected the availability and terms of credit and the pace of economic growth. The Federal Reserve, together with other regulators and the private sector, is engaged in a broad effort to strengthen the financial infrastructure.

Financial crises have occurred periodically around the world for literally hundreds of years, and it is unrealistic to hope that they can be entirely eliminated, especially while maintaining a dynamic and innovative financial system. Nonetheless, recent experience has illustrated once again that financial instability can have serious economic costs. The Federal Reserve will continue its efforts to make our financial system stronger and more resilient, so that it can continue to play its necessary role of supporting economic growth and making credit available to all qualified borrowers.