This news story has 5 comments:

Register or Login to rate comments »
•  
  

  • a fat panda: 
  • Comments (376)
  •  • Instablog (5)
  •  • StockTalk (2)

  • •
  • Joe The Economist
  Worthwhile read. I just don't understand why the author softpedals the obvious. If you tell people that you are on the brink of financial Armageddon, they are going to sell assets. What a stunning surprise.
  
  There was a very good article on this website which discussed the credit default swaps of the banks on the day that Lehman failed. There was a muted response. After two days of the government officials telling us (a) we are on the brink of disaster (b) we aren't sure what we are going to do it the CDSs got crushed.

  Oct 16 11:34 AM | Link | Reply
•  
  

  • alexandre: 
  • Comments (27)
  i'd go so far as to say the fed and treasury were the two biggest catalysts for the severity of this recession and bear market.

  Oct 16 11:44 AM | Link | Reply
•  
  

  • tripleblack: 
  • Comments (1181)
  •  • StockTalk (5)

  • •
  • Stan Bruns Illustrations
  Cause and effect are often switched around in these cases, with the instigator pointing at the effects of his own actions and screaming "Fire!".
  
  These are ultimately found out by the clarity of history if not the forensics of the morgue.

  Oct 16 11:50 AM | Link | Reply
•  
  

  • Carlos Lam: 
  • Comments (563)
  •  • Instablog (2)
  •  • StockTalk (2)
  Wow! I'm surprised somebody in academia actually had the guts to tell the truth about the Fed and Treasury. Kudos to Prof. John Taylor, though he can probably kiss any aspirations of being a Fed Governor good-bye now.

  Oct 16 12:01 PM | Link | Reply
•  
  

  • paulseglund: 
  • Comments (39)
  Its like Kashkari admitting that the Fed & Treasury knew the problems in 2007 yet still kept telling everyone that things were fine. Anyone in private industry might be peering out from a cell by misleading people like that. I agree-the government is the problem right now & they need to do something to enhance our competitive position as a nation or this will be a very long recession.

  Oct 16 12:10 PM | Link | Reply