How the Fed Missed the Financial Crisis
Posted at 1:45 p.m. on Jan. 28
The newly published transcripts from the Federal Open Market Committee’s 2007 meetings show that “the Fed’s excessive focus on the financial system, and the assumption that fixing a financial crisis would fix the economic crisis, led to mistakes down the road,” according to Mike Konczal.
“Aggressive measures to write down bad mortgage debt or otherwise boost consumer demand through the housing market would have helped households but threatened banks… Households, suffering from the housing-bubble collapse, were a secondary priority.”
