The US Federal Reserve has released its Open Market Committee's full discussions from 2007 - the year the crisis started. The first looks suggest that the Fed did not see the train coming, downplayed the initial bad news and then froze. I will add to this post later, as surely there will be plenty of debate on this - latest additions at the bottom of the post, have fun!
-MoreLiver
Previously on MoreLiver’s:
The Federal
Reserve keeps transcripts of its meetings to set monetary policy, and releases
them with a five year delay. It does not announce in advance when they will be
released, but if the past is a guide, any day now we will be getting full
transcripts of the 2007 meetings of the Federal Open Market Committee.
FOMC: Transcripts and Other Historical
Materials, 2007 – FED
Read the Full Fed Transcripts From 2007 – WSJ
The Fed has
just released transcripts for the 11 Federal Open Market Committee meetings
held during the course of 2007.
Three Stages of Fed Grief: Key Quotes From 2007 – WSJ
Fed meeting
transcripts are released with a five year lag. Here is a look at the three key
periods of 2007, and what central bank officials were saying during this
period.
The 2007 FOMC Laugh Track – WSJ
Don't let
all the talk about core inflation and balance sheets fool you: deep down
inside, most Fed policymakers enjoy life as much as you do. It's just not always
apparent in their humor.
Fed Transcripts Reveal Concerns About Private
Equity Boom – DealBook
/ NYT
As the
private equity bubble inflated during the first half of 2007 -- a period
defined by record-sized acquisitions by the world's largest buyout firms -- the
Federal Reserve took notice.
We knew
they were clueless as US financial markets bubbled to the greatest speculative
peak ever from 2000 to 2006, and we knew the Fed waited far too long to act
like a central banker when the crisis hit. Now we know that even after the
crisis hit, they remained clueless.
Into the storm – Free
exchange / The Economist
From subprime to crisis: the Fed’s 2007
transcripts – alphaville
/ FT
2007 FOMC transcripts: a few more excerpts – alphaville
/ FT
Fed's 2007 Transcripts Show Shift to Alarm – WSJ
The Fed’s 2007 crisis response: Twinkies,
pessimism pills, and missed warnings – Wonkblog
/ WP
Fed official alleges Geithner may have alerted
banks to rate cut –
Reuters
In the
summer of 2007, as storm clouds gathered over the world's financial system,
then-New York Federal Reserve President Timothy Geithner allegedly informed the
Bank of America and other banks about the possibility the U.S. central bank would lower one of its
critical interest rates, according to a senior Fed official.
As the United States teetered on the edge of financial
crisis in 2007, one prescient voice within the Federal Reserve was all but
silenced when he warned that problems at Wall Street bank Bear Stearns were not
contained and posed "enormous risk."
Fed missed warning signs in 2007 as crisis
gained steam – Reuters
Top
policymakers at the Federal Reserve felt for most of 2007 that problems in
housing and banking were isolated and unlikely to tear down the U.S. economy as they ultimately did.
ADDED LATER
ADDED LATER
Presenting The S&P500's 50 Point Surge
Courtesy Of The Illegal "Geithner Leak" – ZH