Federal Reserve thought there was no crisis in 2007

The Federal Reserve wishes to apologize for a few minor errors in judgement that may have imperiled the economhy

The Federal Reserve wishes to apologize for a few minor errors in judgement that may have imperiled the economy

This is pathetic on so many levels. The Federal Reserve had no clue financial problems were coming in 2007. Yet blogs like Calculated Risk knew exactly what was coming and predicted it accurately. What’s worse, the very same dimbulbs who knew nothing in 2007 are still running the Fed. They should have all been fired.

Federal Reserve officials were largely unaware of the financial crisis brewing in 2007, until they found themselves in the middle of it.

While I generally enjoy a good conspiracy, I see no indication of one here simply because their blind stupidity was of no benefit to anyone. Thus, we are left with the sad conclusion that we are governed by idiots.

3 comments to Federal Reserve thought there was no crisis in 2007

  • Synoia

    Federal Reserve officials were largely unaware did not want to be aware of the financial crisis brewing in 2007, until they found themselves in the middle of it.

    I expect they were practicing shoot the messenger. I do believe the Bush administration were very aware of what the did in 2003 to “goose” the housing market, and expected to kick the can down the road for the next administration.

    In about 2005 the Banks lobbied to have Bankruptcy Law revised and deny homeowners cram down. To me this shouts “plan” and “intent”.

    Hence the denial in 2007.

  • chalo

    Manufactured crises benefit those in power who would like to seize more power, wealth, resources, whatever. It gives them opportunities to enact self-serving measures under the excuse of general emergency.

    Just look at the results a few years on. The economic pie might be smaller, but the perpetrators the calamity have a larger portion of it than ever. Their biggest problem at the moment, if it can be called a problem, is finding reasonably secure places to invest their ill-gotten billions.

  • hidflect

    Stiglitz predicted the crash in 2005 on Alex Jones’ radio show.

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