Here’s a glimpse at what must have been a fascinating discussion:
"The Federal Reserve’s moves to prop up Bear Stearns Cos. will come to be seen as "the worst policy mistake in a generation," the Fed’s past head of monetary affairs said. The action is comparable to "the great contraction" of the 1930s and "the great inflation" of the 1970s, said Vincent Reinhart, a scholar at the American Enterprise Institute, who retired from the Fed last fall.
Mr. Reinhart’s assessment, delivered at a panel discussion at the institute Monday, is one of the harshest appraisals yet by a high-profile observer of the Fed’s decision in mid-March to lend money to Bear both as temporary funding to make a merger possible, and then to finance $29 billion of Bear’s assets to make its takeover by J.P. Morgan Chase & Co. possible."
I’d love to get a recording or transcript of the speech. Any one have access?
Ex-Fed Official Declares Bear Deal Worst Mistake in a Generation
April 28, 2008 4:10 p.m.
William Rhodes, vice chairman of Citigroup about the outlook for the U.S. economy and financial markets, trade policy and his expectations for China’s growth.
Rhodes of Citigroup Says Credit Crisis `Half Way’ Over
Bloomberg April 25 2008