Bernanke Failed to Anticipate Financial Crisis
A recent report has claimed that Federal Reserve Board Chairman Ben Bernanke could not anticipate economic crisis ahead else things could have been better. Had he estimated that things would go worst in the coming years, some sort of solutions would have been imposed to avert the financial crisis, which hit the U. S. economy in 2007.
Shockingly, even central bankers could not figure out beforehand that mortgage meltdown would cause wreck in the market and so much would be lost. "The odds are that the market will stabilize", said Fed Chairman Ben Bernanke, in a statement to the committee, in August 2007.
Even at that time, William Poole, president of the Federal Reserve Bank of St. Louis, agreed with what Ben said and jointly, they could not read the future economic story.
Though there were some policy-makers like Fed Bank of Dallas President Richard Fisher, who hinted that doomed investment bank Bear Stearns could impact a lot, but he was perhaps not taken seriously. There is no doubt that the financial crisis had has affected markets around the world, beyond complete repair.
"I do not expect insolvency or near insolvency among major financial institutions", said Bernanke during the Fed's December 2007 meeting, while the economy was heading into the Great Recession.
New Zealand News
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