Tim Geithner says:
Things were falling apart. We had no playbook and no tools…Life’s about choices. We had no good choices…We allowed this huge financial system to emerge without any meaningful constraints…The size of the shock was larger than what precipitated the Great Depression.
Indeed, there are some signs that we’ve been in a depression for a number of years.
Geithner also warned that another financial crisis will hit:
“It will come again. There will be another storm,” warned Geithner, who in early 2009 succeeded Paulson as treasury secretary. “But it’s not going to come for a while.”
“I’m certain we will” experience another catastrophe—he just couldn’t say when or what kind.
“You will not know,” he answered when Sorkin tried to pin him down. “It’s not going to be possible for people to capture risk with perfect foresight and knowledge.”
As I noted last year:
Greenspan says that the financial crisis was caused by a once-in-100-year event.
Tim Geithner says its more like once every 40 years.
Jamie Dimon implies every 5-7 years.
But Simon Johnson says its really once every 5 years:
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