emazur
06-15-2009, 04:39 AM
This was from last month at an interview w/ Charlie Rose - I just found it and don't recall seeing it posted here.
Mr. Geithner: "But I would say there were three types of broad errors of policy and policy both here and around the world. One was that monetary policy around the world was too loose too long. And that created this just huge boom in asset prices, money chasing risk. People trying to get a higher return. That was just overwhelmingly powerful."
Mr. Geithner: "Remember as the Fed started -- the Fed started tightening earlier, but our long rates in the United States started to come down -- even were coming down even as the Fed was tightening over that period of time, and partly because monetary policy around the world was too loose, and that kind of overwhelmed the efforts of the Fed to initially tighten. Now, but you know, we all bear a responsibility for that. I'm not trying to put it on the world."
http://online.wsj.com/article/SB124208327133908471.html
Also, if anyone's interested, I found and uploaded a clip of an ex-JP Morgan banker saying last month that the crisis would have happened even if credit derivatives had been outlawed:
YouTube - Crisis would have occured even if derivatives were outlawed (http://www.youtube.com/watch?v=2LFIIbo0QaA)
Mr. Geithner: "But I would say there were three types of broad errors of policy and policy both here and around the world. One was that monetary policy around the world was too loose too long. And that created this just huge boom in asset prices, money chasing risk. People trying to get a higher return. That was just overwhelmingly powerful."
Mr. Geithner: "Remember as the Fed started -- the Fed started tightening earlier, but our long rates in the United States started to come down -- even were coming down even as the Fed was tightening over that period of time, and partly because monetary policy around the world was too loose, and that kind of overwhelmed the efforts of the Fed to initially tighten. Now, but you know, we all bear a responsibility for that. I'm not trying to put it on the world."
http://online.wsj.com/article/SB124208327133908471.html
Also, if anyone's interested, I found and uploaded a clip of an ex-JP Morgan banker saying last month that the crisis would have happened even if credit derivatives had been outlawed:
YouTube - Crisis would have occured even if derivatives were outlawed (http://www.youtube.com/watch?v=2LFIIbo0QaA)