Federal Reserve: Yes, We Made These Huge Mistakes in 2007

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Crystal BallTop Federal Reserve policymakers believed, in the months leading up to the recession, that problems with the housing industry in 2007 were isolated and non-threatening to the U.S. economy.

New reports issued this week show U.S. Treasury Secretary Timothy Geithner, then-president of the New York Federal Reserve Bank, believed the symptoms banks were showing, such as lack of funds, were normal and that Wall Street was still doing fine.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

“We have no indication that the major, more diversified institutions are facing any funding pressure,” Geithner said according to the transcripts. “In fact, some of them report what we classically see in a context like this, which is that money is flowing to them.”

Fed Chairman Ben Bernanke had…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business