Conversely, for the United States, this resulted in current account deficits because the savings shortfall due to excess consumption was covered by importing capital. This set the stage for the spread of a USmade "credit bubble" to the rest of the world. Obviously, the global imbalance on its own is insufficient to generate a "credit bubble" that is completely divorced from economic fundamentals.
*  *  *  Chairman Frank, Ranking Member Bachus, and other members of the Committee, I appreciate this opportunity to provide a brief review of the Federal Reserve's various credit programs, including those relying on our emergency authorities under Section 13(3) of the Federal Reserve Act.