This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Inside the Fed's First Financial-Crisis Meeting; Cramer Was Right

Stocks in this article: JPM BAC

Dudley offered a simple response: when things settle down and liquidity in markets improves.

Note: The Fed's two current monetary easing programs include $40 billion a month in open-ended, mortgage-backed securities purchases and $45 billion a month in open-ended, longer-term Treasury bond purchases.

"I think there's a lot of suspicion, both in the markets and elsewhere, that the effects of all that easing policy is having kind of diminishing returns," Plosser said in an interview with TheStreet on Jan. 16, 2013. "The benefits, if you will, are not as strong as they were at the height of the crisis."

The meeting then turned to concerns about Europe and whether institutions in the eurozone would be at significant risk of liquidity problems.

Atlanta Fed President Dennis Lockhart asked if there were any "analogs" to Countrywide and Washington Mutual in Europe. The answer to Lockhart's question revealed how unaware Fed members were of the gaping problems that would eventually cripple the U.S. financial system.

"I think there is a general sense that a lot of this subprime stuff ended up, as it has in the past, in institutions in Europe," Geithner responded. "So I assume that we have the risk ... b ut, again, we have no indication from any of our counterparts yet that any major institutions face a significant funding or solvency issue."

Geithner's was the final point made by a member during the first emergency meeting held by the FOMC in regards to the financial crisis.

Plosser asked Bernanke to repeat the statement to the committee. He did so.

The Fed released this statement on Aug. 10, 2007. It was the first in a string of emergency monetary-policy releases that for the coming years would grip Americans, financial markets and the rest of the world.

A few days before the Fed's first emergency meeting, TheStreet's Jim Cramer unloaded on Fed officials in the following remarks:

"I have talked to the heads of almost every single one of these firms in the last 72 hours, and Ben Bernanke has no idea what it's like out there. None. And Former St. Louis Fed. President Bill Poole has no idea what it's like out there. My people have been in this game for 25 years and they're losing their jobs, and these firms are going to go out of business, and he's nuts! They're nuts! They know nothing!... This is a different kind of market, and the Fed is asleep."

Here's that video:

-- Written by Joe Deaux in New York.

>Contact by Email.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs