We “did not perform flawlessly.”
--Fed Vice Chairman Donald Kohn, assessing performance of
The Federal Reserve Board during the housing bubble
Afterthought: Sen. Richard Shelby asked him if he thought the Fed had been afraid of the banks. Kohn said no, and if you believe Benjamin Friedman (link), Kohn is right: apparently the Fed did not act because Alan Greenspan believed, as a matter of principle, that it should not act.
Link: WSJ via this site (link) (Journal is $$$).
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