YouSaid · the spoken record

Richard Field

lines on the record: 146
first: 2022-10-20
most recent: 2022-10-20
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“We haven't shown that less demand, as I said, in the early 80s, we couldn't show that that reduction in demand reduced inflation. This is the thing about the Fed narrative about monetary policy.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I mean, this is going to sound cold hearted, but I'm not saying I believe it, but this is the analysis that that's the point. They won't deal with inflation, so they'll spend less money, so there's less demand. So the prices of things will go down.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“That's a horrible policy. I do not know one person Who is able to deal with inflation better when they are unemployed? Okay? Better to face ten percent a year inflation with a job than without a job.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“My thing here is that the concern about being Arthur Burns Because you're not focused on the right narrative. If you focused on the narrative that really has dominated and describes what's happened to the economy, which is the supply, the Bow Whip effect. And now you're looking at the supply chains. You can go, what can the Fed reasonably be expected to do with inflation versus what can't it do? The idea of raising rates according to Powell was to also drop the number of job opportunities and to increase unemployment.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I think that if we haven't already reached it, the probability is that we're very close to peak inflation. Of course, energy could go back, oil could go back up to 150 bucks, which is another tail risk that the Fed has to control, and that's why the Fed can't cut. I mean, Arthur Burns, the guy who's famous for being way too loose, he raised interest rates to what, 9%. There was an OPEC shock in 1774.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Those deals at 3% worked at 5% mortgage rates, they're done. And in fact, Wall Street's now in the position of where they're trying to get rid of all those houses that they now own.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“We had a lot of shifting around of that because of COVID. I agree with you. But again, if you think of kind of the changing of the demographics a little bit there, what you see is that's all eased back. Companies are now saying, well, not so fast going off the Boise when you work in San Francisco. You need to be in here at least one day a week. So, the Boise market you can see has taken a dramatic downturn. And that has to do with, as I said, A noble pendulum swing back. You could have seen that coming. Markets like Phoenix, you know are going to weaken because Phoenix is attractive to old people. Old people die. Their children seldom want their Phoenix place. So it goes on the market. So there tends to be a steady supply that comes on. Now, the other thing we had going on in some of these markets is that we had Wall Street buying houses.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Because the people who were in this baby boom generation who have this house, they weren't selling as long as we had COVID and we had this notion that You had to be shut down, so they were being very conservative in what they were doing. But no”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“You might say it was too hot, but I'm going to come back and go. This was a market that was already on its way down. Because remember, people were still dealing with COVID. So you have a lot of people who are in the baby boom generation who own a house. who aren't in the right size house for what they want going forward.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I mean, it was too strong. I mean, if house prices were going up 20% a year and you could get a mortgage at 3%. Pretty good returns. So if houses are going 20% a year, you're getting 3%, you could finance it with 3% debt, then I'm going to buy a house. And then the bubble continues. So? It was too hot. It was too hot, Richard”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Federal Reserve does not control the mortgage rate, but they do control Fed funds. Fed funds I think it's overkill having mortgages go from three to seven. I think you want mortgage rates down in the four and a half. They want to go from 3 to 4.5. You want a more active Housing market. You just don't want to kill the housing market and the development market. That doesn't to me make any sense.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I'm talking about Fed funds. So, yeah. The Federal Reserve does not control the mortgage rate, but they do control Fed funds. Fed funds went from zero to three. Mortgages went from three to seven. Yeah.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I think the economy could handle 3% rates. There's a difference between handling a 3% rate and handling 7-8% on a mortgage rate when we've been at 3%.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“That's what I've been saying. That's the driver of inflation. The San Francisco Fed had an interesting study, an interesting chart, where they had 8% inflation that they show. They show 2% of it is land driven. They got 4% of it being ambiguous is the author's term, and the rest of it being supply driven. When you go into what's ambiguous, you see most of that supply related. We're really in a position where this is a supply problem. That bull whip effect perfectly describes what we're seeing.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“It's not demand driven. The inflation's on the supply side. Our supply. hasn't caught up to the demand. Okay, they're still asking for things that the supply side can't generate. I mean, one of the reasons we had the problem is look at China for a second here. See, you guys can blame, by the way, the boomers for this over the last 40 years. The boomers moved manufacturing out of the US over to China. Now what we have is China doesn't open up the supply chain back to the US so we don't have products that people want. Okay, and we can't manufacture them. So now they're talking about maybe we should move manufacturing back towards the US, move it to Latin America or someplace like that. But the point is... We have a supply problem, supply chain problem.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“The reason I'm not with Jay is because your generation needs buyers. It needs demand, it needs people to be consuming. When the boomers come to me, though, though, th”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“They're in retirement age. Many of them already retired. The way people operate in retirement is you tell me how much money I can spend without running out of money? Before I die, and that's what I'm going to spend. They're all”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“People who have a low rate mortgage, they're already saying that they're not going to move because you'd have to get huge house, you know, a huge bump in salary to justify moving across the country. For a new job Think of the loss you're going to take on your house when you come to sell your house. So we've got people now locked into a position where they can't get out of their house. We have really dramatically changed the economy here in a very negative way. But house prices are going to continue to fall. People are going to watch as the house prices in their neighborhood slowly decay. That are going to happen. People are going to save more money. Demand's going to go down. As we have been slaughtering the stock in the bond market, think of who owns most of the stock in the bonds. It's the baby boomers, right”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I always like to tell people during the peak crisis in nineteen eighty eighty one. People still took mortgages. When you need to get a house, you need to buy a house. Okay, people will still be buying some houses, but where houses will meet what people will be able to afford, that's going to be a far lower number. You're going to see far fewer transactions if you're a builder. Chances are you've already purchased the land that you were going to put the house up on? That house that you're going to put on that piece of property is no longer something you can sell at a profit. Because of what the Fed did and the speed with which they did it. So builders are just going to sit on lamp. Rather than take losses, so we're going to have aggravated the housing shortage”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Yeah. No, the mortgage market is already in like a nuclear winter. In terms of, you know, if you run out of, if you have a mortgage business, I mean, originations, refinancings are down. 60%, something like that. So it's not a good time to have a mortgage origination business. What you said is right. I mean, I heard 30%, but yeah, 35% sure, but that does not mean that how the prices will go down by 30% or 35%.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I think of the economy as one of the biggest drivers in the economy is housing I think that's what fifteen percent The economy Housing in the US has always been sold, or at least since the Great Depression it's been sold on what's the maximum payment you can afford on a monthly basis, that's the house you should buy. That's how people buy their house. Well, when we took long-term 30-year mortgage down to 3% or less, the market adjusted down to three percent or less. When you raise rates from 3% to 7% like they just did, You suddenly are looking at house prices in order to keep the same payment. If you were prospective buyer as the current owner has? House prices have to decline on the nature of thirty five percent. Okay, so how many people have bought a house for four hundred thousand dollars?”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“They're all furious at the US for their interest rate policy it's pursuing. If you think about our interest rate policy and what I told you about the story of the bull whip effect, You wouldn't raise rates.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“You're going to be looking at it and you're going to be saying to yourself, everything that you count and you see in your life in terms of a current price is falling like a rock. Okay? Now the Fed might say, oh, look, CPI is still going up because we have strange things happening statistically. But the Fed's going to be facing what everybody calls deflation now. And they're going to be talking about it. They're going to make the adjustments themselves because the market is good at figuring out what the adjustment should actually be. They're going to be talking deflation. And that's 2023's theme, is deflation. We're going to have, the Fed is pushing the world into a severe recession. You got all these guys meeting in DC right now.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“But Richard, the Fed does not look at the CPI, but we shave off the owner's equivalent rent because we all know it's BS, the Fed looks at the CPI. And I mean, the OER is a huge tailwind for inflation. And so you're saying that headline, even with this OER thing, CPI will be month over month negative.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“And it trails by like twelve months or whatever, okay, but if you look out what you're going to be seeing early next year.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Headline and All of this stuff. Okay. Well, you got to realize there's a certain amount of this trailing crap in the CPI, for example. That's just owner equivalent rent. Which is the ultimate made up number.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“You're going to be sitting there going, look at what just happened. If you look at the housing market, housing market has crushed.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, we could easily find ourselves given what the Fed is in the process of doing. I think, looking at negative five, negative seven”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“And the Bullwip effect accounts for the inflation. When you have too little supply, Because you can't satisfy that demand. Obviously manufacturers mark up the price of all their goods. Get inflation. Now those manufacturers though have more than satisfied those particular market niches. If you look at like Walmart and Target, They're going into massive sales because they now have more stuff than they know what to do with it they're trying to get rid of in terms of inventory. Okay, so we're now seeing the other side of the bull whip effect. They overordered because they were double ordering, triple ordering just to get any product in two years ago. Now they're on the other side of it where they got all the product and more. So what we're going to see is we're headed into deflation.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Not surprisingly, by the way, when it reopened we had demand for goods that was different than what the supply chains could produce. For example, when you had everybody at home, people wanted patio furniture. So they could sit out and see their friends, okay? People didn't want patio furniture after that opened. They wanted other types of furniture things. So we had a change in the mix. Our supply chains are designed not for big shifts, but for little shifts. We have something called the bull whip effect. Are you familiar with that?”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“So that was the energy price side of it. The union side of it was we had lots of layoffs because when you get rates up that high, you really do get the economy to crush. You know, slow down. Along comes Ronald Reagan, and he goes after the air traffic controllers union. and he effectively breaks that union. And when he breaks that union its open season for US manufacturers against their unions. And that's the end of cost of living adjustments. They suddenly start coming out of the contracts, and that's the end of the wage price spiral. Nothing to do with Fed interest rate policy really Now, fast forward to 2021. We have something called the COVID pandemic. The COVID pandemic results in a global shutdown of our supply chains. Everybody knew when the supply chain reopened, when the world reopened, the supply chain would have to restart.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“They have the right lessons from 1980. So I'm there, we hike race, incredibly high. We got rates up into the 20%. You know, when the primary loans, the so-called best customer, goes for 21%. What do you think that the loan sharks were charging? At the same time, okay, it must have been unbelievable But the point was. It didn't slow inflation. While at the fed we tried to show that monetary policy actually reduced inflation, that there was a cause and effect. The two We couldn't do it. So we trotted out the narrative that said it works with long invariable lags Now, the inside thing was Opeck had more control over inflation than we did. Opeck effectively fell apart in nineteen eighty one. We had more well discovered, there was internal fights there, but oil prices came tumbling down.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Exactly Okay, if you went to the retail sector, the retail sector knew that these people had cost of living adjustments over in the manufacturing sector. They automatically gave those same cost of living adjustments to their employees because they knew otherwise their employees would go to the manufacturers to go work for the union, okay? So in order to keep your employees, you were also doing this. Hence, we had this wage price spiral going on. You're with”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Okay, so this is the moment that the Fed. Volker's had his top of his game. This is the Paula wants to channel his inner Volker, right? Coming out of the 70s we had energy shocks that were driving inflation. The other item we had driving inflation was we had this idea of excess demand. Where the government was still spending a lot of money, we spent a lot of money on Vietnam. Okay, so we created a lot of artificial demand in terms of government spending. The other thing we had going on in the seventies that does not exist today was the unions were very strong, and we had something called a cost of living adjustment. Are you familiar with those”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“So Was a mistake for pronunciation to cut rates. A mistake for powell at the current what time to be raising rates the way he is. I had no problem, by the way. I've argued for over a decade that rates should never gone below two percent 2%, by the way, Jack is a number that I'm not pulling out of thin air. But in the 1870s, Walter Bajet, who's the father of modern central banking, And he said, if it goes below that, you'll end up with all sorts of economic headwinds. In the nineteen thirties, John Keynes came along and he quoted Berger. 2% being the minimum nominal rate and agreeing with him.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“He's not come out and said, no, no, no, no, we're going to be sure nothing breaks. Enough people have quoted, said that he has said this, that you would think he would come out and go, okay, I'm very aware that there are problems in the financial system, both in the US and globally. And I am not going to let something break. In this global system because of how I'm raising rates. He hasn't said that. We're on a mission to raise rates.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Fast forward here's the Nobel Prize Committee giving an award for the wrong approach. And if you look, we got problems today. We got inflation that is being driven by the supply side, by energy. The Fed is busy raising rates with the statement by Powell. We're going to raise rates until something breaks. Don't know, I was just”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Did you ever see the movie a few good men? Ah, you have got to YouTube the Jack Nicholson doing his colonel jess of speech where he is on the witness stand and he's going You need people like me up on the wall Okay, you have Tom Cruise going like, no, we don't. We absolutely don't. This is, he was doing his colonel Jessup. The more you hear it, the more you realize he's wrong What he was doing just absolutely was the wrong possible solution. Go back to october two thousand eight. There is the great depression expert, Anna Schwartz. Nice by everybody in the industry as the expert going, your approach is wrong. Ye need to deal with all this bad debt first.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“That was his explanation for it in two thousand eight, two thousand nine. Remarkably, it turned out that they didn't lend the money on. And there was actually a knowable reason for that. And the reason is that banks are secured lenders Everybody in the banking industry was looking at the same basic portfolio of loans, asking themselves what's a house worth? What's a commercial building worth? Okay, the things we're taking security interests, what are they worth? Given all the bad debt that we have linked to these assets so there could be at any moment in time a huge write down, what are these things worth? So suddenly what they're willing to do is only give up 40, 50 cents on the dollars for collateral value Okay, that's what stopped lending. As opposed to, oh my God, we don't have enough lenders.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I'm Raleigh, as the loan officer is where did we lose all of our money? Did we lose the money from the loans that I was making Or did we lose the money because our corporate asset liability people, our Treasury Department, decided to invest in a bunch of subprime securities that they had no idea how to value? The guy who's lending money to Ford knew what he was lending money to. His morale isn't hurt beyond the fact that he saw his net worth get destroyed by the other parts of the bank. And by the way, we're lending officers going to go to. They're going to go to banks. That's what they do. That's what they're trained to do. And you're kind of asking ladies, you're going to go away. They're not. What you saw with QE. With Bernanke coming out and saying, part of the reason I'm doing QE is so the banks will lend the money on.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“You don't think morale would be a little low? It's like, hey, talk to some person next to you. Hey, we did such a bad job making loans that we don't exist anymore as a company. But on Monday, we're going to be a new corporate entity. I don't know. I feel like my morale as a loan officer would be a little bit impaired.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“It was known because the regulator came out and came up with a wonderful thing. To plug the hole in their balance sheet. So that even though the balance sheet was headed into massively negative numbers, the regulator was literally giving them capital through an accounting machination. So all I'm saying here is the borrowers from these SNLs knew the S&L was bankrupt. But that didn't stop them. The S&Ls gave them loans at favorable rates. It didn't stop the SNL from being able to get funding. The SNL turned to a bunch of places who were happy to deposit money in them because the SNLs were willing to pay a premium for funds. It's mythical that banks will stop. Lending during the business to make good loans. They're going to continue until the moment you close them down. That's what lending officers do is make loans. You don't think morality”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Does that suggest that it was sort of not official, but everyone knew it was insolvent? Because if everyone knows it, but it's not officially recognized, that's not recognizing the losses. Was there actually a bank balance sheet?”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Let's go back What we know is they have no equity, okay savings and loans. It was known they had no equity. In the mid 80s. Even though it was known they had no equity, they continued to lend. This is what banks do. They engage in lending.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“I guess what you're saying as a framework, a hypothetical framework. And yeah, sure, they did it in Iceland. But, I mean, it's the fact now that JP Morgan has to think about its equity ratio of how much equity it has. And if it's in violation of that, it gets penalized. Suddenly you have people knocking on Jamie Diamond's door. But I mean, in your case, the equity is zero because there's no equity at all. I mean, that's”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“The only reason they wouldn't be able to make a loan is that the government says you cannot make a loan. So long as the government says you are in business and allows you to be in business, you can continue to make loans. The moment they say you're not in business, which is that Friday evening, you're not making a loan anyhow between then and the Monday morning.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Let's go back to the lessons from the savings and loans first. Because the savings and loans were insolvent didn't mean they stopped lending. Okay, that's one of these narrative assumptions that Bernanke et al. throw out there.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Cause a lot of collateral damage. I mean, you know, banks just released their earnings today. I mean, five of them. Oh, and by the way, so you think JP Morgan, you think a lot of banks are going to solve it now, which I want to get into in a second. But banks released their earnings today. And they had a net interest margins. The spreads have gone up because deposit rates have not gone up, even though interest rates have gone up and they're earning more. So it's good. Maybe I'm wrong. But I just think that if you shut down banks. How can the lending business work if you shut down a bank?”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“What are those businesses that City does that have quote good assets? Okay, yes, you're saying get rid of the Wall Street people, get rid of the CDO machine, get rid of the subprime origination. But I think, quote, safe and good businesses, let's call them consumer lending, credit cards, corporate lending, whatever. I think you're assuming that that would not get affected by shutting down banks. Whereas, I don't know, maybe men were making consumption and maybe, I don't know, I'm convicted by the Bernanke case is that...”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, you clearly would have worked. There was no doubt about it at the time. What you would have done though is you would have gotten rid of a lot of Wall Street. The city would have gone away. You'd have had City broken up into say fifty little banks Because now once the FDIC has it for resolution, there's no reason it has to recreate a big city. It can recreate small cities. Same thing for the JP Morgan's.”
2022-10-20 · Forward Guidance · The Fed Blundered In 2008 —And It’s Blundering Now | Richard Field · IDENTIFIED FROM THE TRANSCRIPT