Video: Bear Stearns Bailout “Worst Fed Mistake in a Generation”

April 30, 2008 3:30am by

On Monday, I pointed to a WSJ article, regarding the Fed’s past head of monetary affairs comments on moves to prop up Bear Stearns.  (Bear Stearns Bailout "Worst Fed Mistake in a Generation")

Here is the video that was the basis of that article:
click for video, then select Reinhart from list
Reinhart

Previously:
Bear Stearns Bailout "Worst Fed Mistake in a Generation"
http://bigpicture.typepad.com/comments/2008/04/bear-stearns-ba.html

Sources:
What Lies Beyond the Credit Crunch? Part II 
AEI, April 28, 2008  2:00 PM 
http://www.aei.org/events/eventID.1712,filter.all/event_detail.asp#

Our Overextended Fed
Vincent R. Reinhart
Wall Street Journal, Wednesday, March 26, 2008
http://www.aei.org/docLib/20080428_ReinhartOurOverextendedFed.pdf

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What's been said:

Discussions found on the web:
  1. Trackerman commented on Apr 30

    Barry,

    What a great video. It is amazing that with the same facts in front of these scholarly presenters, there conclusions were so totally diverse. So much so that John Makin noted that the audience was likely very confused.

    The initial comment by John Makin was also priceless He said that after listening to the comments of some of the presenters before him, he wondered what planet they came from.

    Another notable comment by Allan Meltzer: The Fed’s current policy of fine tuning will fail just as it did in the early seventies.

    The video is long, but very worthwhile to get views from people different from the usual “Kudlow and CNBC” crowd.

  2. Philippe commented on Apr 30

    Whilst too long to devote enough time to listen to the whole panel of discussion, the most striking is lectures or opinions are made on given data a Dow at…. An SP at …. An average housing price at…but no consideration is given to how these numbers have been reached or are made.
    This is where few market actors (illusionists) have succeeded in imposing an illusion and a money illusion.

    PS In my scholar life Alan Metzler was more often introduced as an economist than a political economist!

  3. mh497 commented on Apr 30

    The worst Fed mistake in a generation was Greenspan holding interest rates two low for 2 years apres 2001.

    The second worst Fed mistake in a generation was not raising margin rates in 1999.

    The third worst Fed mistake in a generation was their lack of comment, nee encouragement of the housing bubble, subprime, CDOs, etc.

    Bear Stears… I’m not even sure it’s Top 5.

  4. Jon H commented on Apr 30

    AEI? Is he as dumb as their foreign policy ‘experts’?

    If not, he should look for a new source of wingnut welfare.

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