Albert Edwards: Why we are destined to repeat the mistakes of the past

Zero Hedge/Tyler Durden

“I was amused to read the NY Times op-ed, co-authored by the three leading US policy makers at the time of the crisis (Ben Bernanke, Tim Geithner and Henry Paulson). In a piece entitled ‘What We Need to Fight the Next Financial Crisis’ they lament the fact that ‘Congress has taken away some of the tools that were crucial to us during the 2008 panic. It’s time to bring them back (link).’

Tools! Apparently, they always need more tools. Rubbish, they had all the tools necessary. They just never recognised beforehand that the economy was a massive credit bubble – just like it is now. It was worse than that. In 2005 Bernanke had even derided an interviewer who asked him about the possibility that the housing bubble could burst. And I also remember Shelia Bair, who headed up the FDIC (the Federal bank liquidator) at the time, and had successfully seized and closed many banks during that period, including the massive Washington Mutual, lamenting that she had not even been consulted about Lehman’s.” – Albert Edwards, SocGen

Repost from 9-13-2018

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