Geithner on Charlie Rose
An interesting video from Charlie Rose featuring Tim Geithner. Rolfe Winkler caught the best exchange:
Rose: “Looking back, what are the mistakes and what should you have done more of? Where were your instincts right, but you didn’t go far enough?”
…
Geithner: “…I would say there were three types of broad errors of policy and policy both here and around the world. One was that monetary policy around the world was too loose too long. And that created this just huge boom in asset prices, money chasing risk. People trying to get a higher return. That was just overwhelmingly powerful.”
Rose: “It was too easy.”
Geithner: “It was too easy, yes….
Lax lending standards - which equates to easy money - allowed the bubble to inflate. We’re now dealing with the consequences of that. Rolfe has more analysis on what this means.
