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“We think the fundamentals of the expansion going forward still look good,” Timothy F. Geithner, then president of the Federal Reserve Bank of New York, told his colleagues when they gathered in Washington in December 2006.

And this was the 'must have' guy for Treasury Secretary when Obama took office.

1 posted on 01/13/2012 12:50:09 PM PST by edpc
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To: edpc

Unbelievable that the economy of our nation is run by these clueless “experts.” We could get better results from a monkey with a dart board.


2 posted on 01/13/2012 12:53:44 PM PST by StrictTime
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To: edpc

Ah, the big layoff and lock against hiring of December 1st, 2007. Are oil prices (freight fuel) way down now? Are foreign product prices down? I didn’t think so. Too bad. So sad. Starve the B.


4 posted on 01/13/2012 2:25:21 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: edpc
"The transcripts of the 2006 meetings, released after a standard five-year delay, clearly show some of the nation’s pre-eminent economic minds did not fully understand the basic mechanics of the economy that they were charged with shepherding. The problem was not a lack of information; it was a lack of comprehension, born in part of their deep confidence in economic forecasting models that turned out to be broken.

"'It’s embarrassing for the Fed,' said Justin Wolfers, an economics professor at the University of Pennsylvania. 'You see an awareness that the housing market is starting to crumble, and you see a lack of awareness of the connection between the housing market and financial markets.'"

--snip--

"The general consensus on the board, summarized by Mr. Geithner, was that problems in the housing market had few broader ramifications. 'We just don’t see troubling signs yet of collateral damage, and we are not expecting much,' he said at the September meeting."

"Mr. Bernanke initially agreed, telling colleagues at his first meeting as chairman, in March, 'I think we are unlikely to see growth being derailed by the housing market.'"

"As the year rolled along, however, Mr. Bernanke increasingly took the view that his colleagues were too sanguine."

"'I don’t have quite as much confidence as some people around the table that there will be no spillover effect,' he said."

All these economists seem blissfully unaware of what was feeding the housing bubble - subprime loans mandated from executive branch initiatives that started under Clinton and Cuomo.

5 posted on 01/13/2012 8:15:35 PM PST by neverdem (Xin loi minh oi)
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To: edpc
Mr. Geithner suggested that Mr. Greenspan’s greatness still was not fully appreciated, an opinion now held by a much smaller number of people.

I figured it out during the Clinton administration when Greenspan had a plunge protection operation which really protected Clinton. Mr. Freemarket and former Austrian School was into market manipulation for political reasons. We should also remember that good ole Greenspan presided over the Dot Com bubble that contributed to the Clinton aura of "success".

It's important to remember just how much of this stuff originated or was made much worse during the Clinton Regime--especially as we may get Her Heinous running as VP for Hussein.

When he signed the Gramm-Leach-Bliley Act, President Clinton said that it, "establishes the principles that, as we expand the powers of banks, we will expand the reach of the [Community Reinvestment] Act".

10 posted on 01/14/2012 10:48:47 AM PST by Sal (The Progressive AKA Communist media must be destroyed, discredited, and replaced by humans.)
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