02:34 - Source: CNN
Bernanke plays defense

Sheila Bair, former chair of the FDIC and author of “Bull By The Horns,” joins “Starting Point” to discuss the policies of the U.S. Federal Reserve and comments made by Federal Reserve Chairman Ben Bernanke.

“I think Ben [Bernanke] is heroic in trying to help our moribund economic recovery through monetary policy, but I don’t think it works,” says Sheila Bair. “The money doesn’t stay here. The money doesn’t go into lending – domestic lending that helps the economy. It goes overseas where it can get higher returns in these developing countries and that creates problems for them.”