Financial Crisis

Bernanke, Fed Blindsided by Financial Meltdown

They didn't see it coming and had no idea what they were dealing with

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They didn't see it coming.

Federal Reserve officials were largely blindsided as the financial crisis hurtled toward the U.S. economy like a freight train in 2007, according to newly released transcripts.

Even as they fretted over the health of the financial markets and growing evidence of a mortgage meltdown, central bankers seemed clueless that year to the extent of the havoc it would eventually wreak.

"The odds are that the market will stabilize," Fed Chairman Ben Bernanke told the committee in August 2007, according to the transcripts, which are released each year with a five-year lag.

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  1. “The odds are that the market will stabilize.”

    What BB failed to mention was that it would stabilize only in 2034 under the Presidency of Kodos the Mighty.

  2. Bernanke, Fed Blindsided by Financial Meltdown

    Didn’t prevent them from shitting bricks of idiotic ‘DO SOMETHING!’ policy.

  3. Ben Bernanke dropped the ball alright, but so did many of us. Something from nothing is what our economy was based on, which was fine so long as we made money.
    Investment trickery, even on a pervasive scale, only lasts so long. Not only did we play the game too long, but we also fooled ourselves into a belief that we were immune to foreseeable market forces, such as the precipitous rise in oil prices.
    And we have yet to address a root cause of our 2008 meltdown. Investment banks continue to generate money out of thin air, and investment banks continue to be indifferent to the rest of us the world over that in the end would have to pay for it.
    Yes we were quick to sure up big banks — to save our own hide — but it is now time to chop them down to size.
    Any bank that does not flinch after a $6 billion hit is too big to have around.

  4. ” Investment banks continue to generate money out of thin air, …”

    Example?

    1. He doesn’t know WTF he’s talking about.

    2. I’ve been working in the wrong field…

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