Here is what this guy said about the housing crisis...... Mishkin identified the genesis of the housing bubble in a breakdown of underwriting standards, linked to the distorted incentives that paid firms to originate a large volume of loans, rather than high quality loans. As prices rose, the views of investors and banks alike were clouded by the expected high returns that blinded them to the risks. "These problems became apparent only in retrospect," he said, casting off any responsibility for the Fed to have caught the problem in time. "Neither the market nor regulators had sufficient information for evaluating the nature of the risks involved." Mishkin expressed hope that the Fed's recent efforts to improve scrutiny of mortgage lending and to improve transparency and the operation of credit-rating agencies would prevent a similar bubble. They didn't have a clue. How do you get a job like that?
Just like when GreenScam held a press conference as soon as he was out of office... to proclaim, "It wasn't MY fault"!
Mishkin was for inflation targeting and advocated the Fed not use policy to pop bubbles. As Kudlow said tonight JP Morgan sees 5% inflation this summer. No doubt the BLS will be working harder this summer to substitute out all the inflation.
I remember we use to have these inflation debates a couple years ago. I'm glad that you've finally seen the light. No doubt the BLS will be working harder this summer to substitute out all the inflation." All in good fun. All in good fun.