• CREDIT MARKETS STILL UNDER CONSIDERABLE STRESS
• FURTHER HOMEBUIDING DROP IN COMING QUARTERS
• ECONOMY MAY CONTRACT SLIGHTLY IN FIRST HALF
• BEAR STEARNS TOLD FED IT WOULD FILE CHAPTER 11
• GROWTH PROSPECTS ABROAD DIMINISHED SOMEWHAT
• SOMEWHAT HIGHER UNEMPLOYMENT RATE
• FED MONITORING PRIMARY DEALERS WITH SEC
• LIKELY CONSEQUENCES OF A BEAR FAILURE SEVERE
• FAILURE WOULD HAVE SPURRED CHAOTIC CONDITIONS IN THE MARKETS
• INFLATION A CONCERN, EXPECTED TO MODERATE
• ECONOMY TO RETURN TO TREND GROWTH RATE IN 2009
• FED, FISCAL ACTIONS MAY SPUR GROWTH RETURN IN H2
• CREDIT CONDITIONS TIGHTENING.  CITES COMMERCIAL PAPER MARKET
• HOUSING IS A CONTINUED DRAGGED. 

Analysis: Bernanke tells of the consequences of the Bear Stearns.  It is not about the cost of the bailout but the repercussion costs that were avoided.  This outlines the fragility of the credit markets.  They can turn on a dime.  He acknowledges the contraction in the first half but is positive about the future.