The Washington Post reminds us that MOTY Ben Bernanke is human.
“Importantly, we see no serious broad spillover to banks or thrift institutions from the problems in the subprime market,” Bernanke said [in May 2007]. “The troubled lenders, for the most part, have not been institutions with federally insured deposits.”
He was wrong. Five of the 10 largest subprime lenders during the previous year were banks regulated by the Fed….
