in 2005, ben bernanke addressed the implications of the usa's high and rising current account (trade) deficit, resulting from usa imports exceeding its exports. between 1996 and 2006, the usa current account deficit increased to a record of nearly 6% of gdp. financing the trade deficit required the usa to borrow large sums from abroad, much of it from countries running trade surpluses, mainly the emerging economies in asia and oil-exporting nations. a significant portion of this borrowing was directed by large financial institutions into mortgage-backed securities and their derivatives, a factor that contributed to the housing bubble and the crises that followed. the trade deficit peaked in 2006 along with housing prices.