TV News LIES

Thursday, Mar 05th

Last update06:48:48 AM GMT

You are here News Economy Fed missed warning signs in 2007 as crisis gained steam

Fed missed warning signs in 2007 as crisis gained steam

E-mail Print PDF

Fed missed warning signsTop policymakers at the Federal Reserve felt for most of 2007 that problems in housing and banking were isolated and unlikely to tear down the U.S. economy as they ultimately did.

Even as crisis signals started flashing red with the freezing of credit markets during the summer, Fed officials believed the troubles would be moderate and short-lived, according to transcripts of the 2007 meetings released on Friday after the customary five-year lag.

U.S. Treasury Secretary Timothy Geithner, then president of the New York Federal Reserve Bank, said during an emergency telephone call on August 10 of that year that most of Wall Street was still doing fine.

"We have no indication that the major, more diversified institutions are facing any funding pressure," Geithner said according to the transcripts, which total 1,370 pages. "In fact, some of them report what we classically see in a context like this, which is that money is flowing to them."

Similarly, Fed Chairman Ben Bernanke underestimated the risks of a looming financial blow-up.

More...



"I do not expect insolvency or near insolvency among major financial institutions," he said in December 2007.


Most Recent Related Stories...


11 big profitable companies pay no tax

11 big profit companies pay no taxYou’re probably figuring out how much you owe the tax man for 2014 about now. The...

IRS Audits of High-Income U.S. Households Drop to 6-Year Low

tax auditThe U.S. Internal Revenue Service, struggling with a smaller budget, audited 7.5 percent of households with...

Target to cut jobs in $2B growth strategy

Target to cut jobsTarget plans to invest billions of dollars this year streamlining its business, opening new stores that...

Walmart Gives 500,000 Workers A Raise

walmartIn a move that could alter the minimum wage debate and improve the image of the...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!