Highlights from Bernanke in front of Congress:

• There are some similarities now to 2001 economy
• Credit disruptions not near an end
• Sustained disruption in the credit process
• There are greater inflation pressures now than 2001
• Additional housing steps may be needed later
• Fair to say tougher to respond now than 2001
• Price expectations reasonably well anchored
• I don't anticipate stagflation
• I do expect inflation will come down
• We will return to growth and price stability
• Strong economic growth in the next few years
• Fed must weigh risks of setting policy
• There will probably be some bank failures, but not among biggest banks
• Big banks have enough capital to stay solvent
• Disputes analysis that US will return to 1970s situation
• Opposes intervening to help mortgage-debt investors
• About 20% of mortgage problem is held by investors
• It is important for US to remain attractive investment