Wrong at the Reserve

If you didn’t predict the housing bust, don’t feel bad, the Fed totally blew it too. Reading just released minutes from the ’06 meetings, is hysterically funny were it not so tragically sad. Bernanke was confident of a soft landing (really?) and most of the others were sure that any problems in the housing sector would not weaken GDP growth or harm the rest of the economy! Separately, GDP growth for Q4 ’11, will be less than 2.5%.