Now how did that happen? It was then President George W. Bush, who asked that question of his Treasury Secretary, Henry Paulson. So, if he didn’t know the financial collapse was coming, how could you have known? We just commemorated the 10th anniversary of the collapse of the investment firm Bear Stearns an event that presaged the worst financial crisis since the Great Depression. We go back with two financial experts to re-visit what went wrong and whether it could happen again. In that process, we explore the remedies put in place at the time and whether they should provide any comfort that the steady growth of the economy since that time is real or built on another bubble ready to burst. In this episode, we are joined by Edward Pinto, who was chief credit officer for Fannie Mae in the 1980’s and no co-directs the American Enterprise Institute’s Center on Housing Markets and Finance. He is also a former FDIC and Federal Reserve economist.
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