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Bernanke admits a erring in gauging impact of mortgage crisis

US Federal Reserve Chairman Ben Bernanke acknowledged that he underestimated the fallout that the subprime mortgage crisis would have on broader financial sector, according to an article in the latest edition of The New Yorker magazine.

“I and others were mistaken early on in saying that the subprime crisis would be contained,” Bernanke said in an article in the December 1 issue of The New Yorker.

“The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict,” he said, according to the report.

The subprime mortgage crisis, sparked what is seen as the worst financial crisis to hit the world since the Great Depression of the 1930's. (Reuters)