Bernanke Downplays 'Bubble'

The president's new economic adviser says rising house prices reflect a strong economy, downplaying the notion of a housing bubble.During a July 8 television interview on CNBC business news, Ben Bernanke, chairman of the president's Council of Economic Advisors, said "the fundaments are very strong" and argued that housing prices are supported by demographics and job growth. "Most of what has happened is a result of the economy," Mr. Bernanke said. The former Federal Reserve Board governor started his new job at the White House on June 21.