The Markets Will Soon Be Back On Track

Looks like Greenspan's comments over the weekend have spooked the market following a drop in the Chineese market. Testifying the day after the market's 416-point plunge, Bernanke told the House Budget Committee that the Fed was monitoring market developments but had seen nothing that would cause it to change its positive outlook for the economy.

Discussing market operations, he said, "They seem to be working well, normally."

In what might have been a reference to Greenspan, Bernanke said there did not appear to be just one cause for Tuesday's sell-off.

The possible causes suggested by analysts ranged from a record drop in China's Shanghai index, a surprisingly weak U.S. manufacturing report and weekend comments by Greenspan that raised the possibility of a U.S. recession by year's end.