Transcripts show Fed in '07 underestimated impact financial crisis would have on US economy

  • Article by: MARTIN CRUTSINGER and CHRISTOPHER S. RUGABER , Associated Press
  • Updated: January 18, 2013 - 10:40 PM
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winkelsteinJan. 18, 13 1:22 PM

It's always interesting to note with hindsight how long it took people to reakize the true extent of any huge crisis as it was unfolding. I believe that the Fed still did a remakabke job in keeping the severe recession from growing into a full-scale meltdown of our economy. Thst being said I believe that the housing crisis and unemployment are a very long way from recovery.

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wildcountryJan. 18, 13 2:42 PM

This is news now? They reported this over two years ago. The economy contracted three times more than they originally thought, which means both Bush and Obama's stimulus plans were one third as large as they should have been. How fast of a recovery would we have seen if the stimulas was three times larger, and the plan didn't include 40% in useless tax cuts.

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oleprofessorJan. 18, 13 3:02 PM

The major mistake made by the Fed in 2007 was in reducing the interest rate, while the demoncrats were still building their housing bubble by refusing to put the brakes on Fannie and Freddie and by permitting the NINJA loans being made by Fannie and Freddie and packaged by the banking thieves on Wall Strret - the demoncrat allies. That gave new impetus to the bad loans and permitted them to multiply as "No Income, No Job" loans and Refis continued to be pushed by the bank extortioning team at ACORN.

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garagewineJan. 18, 13 4:34 PM

"How fast of a recovery would we have seen if the stimulas was three times larger, and the plan didn't include 40% in useless tax cuts."---We wouldn't know, because we would still be digging our way out. And I assume you include the temporary payroll tax cut in your definition of "useless" tax cuts.

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lostinstpaulJan. 18, 13 4:41 PM

Geitner- Go figure....

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theagonybhoJan. 18, 13 5:49 PM

wildcountry, it's news now because the Obama excuse tour is just ramping up, they knew what they were getting into, because they didnt make a dent thats the convenient excuse.

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farmpartsJan. 19, 13 7:40 AM

It's comforting to know that same people who didn't see it coming are now reassuring us they have a handle on it.

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