Here is the proof of what Bernanke though in 2007 ( 1 year before the meltdown)

By Daniel at 1 December, 2009, 11:21 am

“At this juncture …… the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained,” Bernanke said in prepared testimony to Congress’ Joint Economic Committee.Mar 28, 2007 Washington Post

“We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system,” Bernanke said. May 17, 2007 International Herald Tribune

“Despite the recent weak readings, we expect business investment in equipment and software to grow at a moderate pace this year,” Fed Chairman Bernanke said today in testimony before Congress. Mar 28, 2007 Bloomberg

On possible bailouts
“It is not the responsibility of the Federal Reserve nor would it be appropriate to protect lenders and investors from the consequences of their financial decisions,” Bernanke said. “Aug 31, 2007 Washington Post.

for further quotes http://news.google.co.in/news/quote?um=1&cf=all&ned=in&hl=en&qsid=an4ad4P71nIlAM&cf=all&as_mind=1&as_minm=1&as_miny=2007&as_maxd=31&as_maxm=12&as_maxy=2007&as_drrb=b