I was invited to be part of an audience for The NewsHour for host Jim Lehrer's interview with Chairman of the Federal Reserve Ben Bernanke. This event was the first in history of the Federal Reserve where a sitting chairman took questions from the public. The logistics and production to pull this off was interesting to watch. It was filmed right here in Kansas City at the Federal Reserve Bank.
I appreciate the Chairman's humility in admitting past errors. He noted that the Feds "missed the boat" on the subprime loan issues. He reiterated his disdain for bailing out Lehman Brothers. A focal point of his conversation was laying out the tools needed to prevent any future chairs from having to say the words “too big to fail.”
It is evident that there are those who have issues with Chairman Bernanke. Protesters were lined up outside of the Federal Reserve Building and, prior to the taping, I received a few comments from constituents expressing disdain for the Reserve. With that said, you have to love the United States of America when there are protesters within ear shot of the Chairman, and local moms, homeowners and small business people having the opportunity to question him.
Great questions were presented and, for the most part, the Chairman gave clear and concise answers. I believe he presented a fair perspective of what has happened to our economy and why, and what tools are being put in place to recover. The one hour allowed for questions was obviously not enough. I felt that we just skimmed the surface. I am an optimistic person. I like to deal with reality and facts. I mention this so my next statement doesn’t sound like "dooms day." We are not out of the woods yet and we need to know what we are facing so we can deal with it.
The Federal Reserve is reporting that delinquency rates on commercial property loans grew in the first quarter. The Kansas City Business Journal is reporting Chapter 7 and 11 have jumped in the region for the first quarter. Is anyone tracking the emerging mortgage crisis involving multi-family housing portfolios? These, I believe, tell the continuing story of our economy and are questions I wanted addressed.
After the taping I did get a brief thirty second conversation with Chairman Bernanke. I told him that as an elected official I was concerned about the commercial loans. With the default of these types of loans, we not only lose property tax revenue but we also face sales tax reductions and job loss. He said, “We are tracking it.”
I pressed on with letting him know that Kansas City dealt with a 90 million budget shortfall. His response? “You're doing better then California.”
I wasn’t satisfied with either answer, but enjoyed my experience and if you did not check out the show on KCPT this week,
I encourage you to watch online.
Until next time,
Cindy