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Washington with more on that -- don't.
Well -- actually most of them did not now how how bad all of this was gonna get that's clear from reading these minutes just released today from.
Five years ago about a couple of fed officials thought it could get really bad now you remember that year 2007.
The -- -- -- prime mortgage crisis hit the housing bubble popped the credit markets got tight.
And at the FOMC meeting on September 18 that year.
One New York fed official predicted that the sub prime crisis could cost banks a hundred billion to 200 billion dollars.
We know though that Washington eventually ended up investing 245.
Billion in banks through the TARP bailout.
The Fed was also forecasting at that time just -- 5% drop.
And housing prices over two years but we know now.
That trillions or lost in housing and stock market values two fed members at the time were very very worried about a serious countered -- governor Janet Yellen.
Saying quote a big worry as that a significant drop in house prices might occur.
In the context of job losses and this could lead to a vicious spiral of foreclosures.
And other bad stuff Cleveland fed president -- A potential rapid deterioration.
In the real economy.
They were both right others did not hear appear as worried and panic back then but Fed Chairman Ben Bernanke and another fed governor Fred Michigan.
Both mentioned the and at that meeting fed members approved a big cut short term interest rates half a percentage point the Fed Funds rate and -- cutting regular -- -- regularly.
After that all the way down to near zero -- -- uninteresting stuff data bombs thank -- and joining me now with -- -- what the.
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