Federal Reserve, Richard Fisher, FED discussed on Biz Talk Radio Show


Everybody. And welcome to best seller TV. I'm Taryn Winter. Brill, We're here with Danielle DiMartino Booth. She's the author of Fed up an insider's Take on Why The Federal Reserve is bad for America. Great to have you with us. Thank you for having me today. Love the title first off. We were just talking behind the scenes it It's amazing you were able to get that title. It's a study in subtlety, isn't it? It really is. Let's get right into it before we get into why you feel the Federal Reserve is bad for America. Tell us how you're an insider. How is this an insider's Take? Are you the insider? I was the insider I was, and I said for nearly nine years, but more importantly, If you go further back into my background just a little bit. I was also an insider on Wall Street. So I took a much different perspective into the federal Reserve. That of somebody who saw the world through the prism of the financial markets. Okay on then I ended up being there. Prior to the financial crisis kind of as the housing bubble was. Erupting and the great financial crisis was descending upon the economy in the country and the global economy, for that matter, so I was able to really have a bird's eye view. On the carnage of the financial crisis from ground zero. The front lines of the federals are on the frontlines. Absolutely, and tell us in what capacity did you work? The Federal Reserve. I started out as an analyst and I ended up becoming an adviser to Richard Fisher on monetary policy, and before he would go after Washington. I would brief him on Every matter that seemed to be as concerned with the financial markets as opposed to just economic data flow, GDP growth inflation, etcetera. I really briefed him on what was happening in commercial real estate. What was happening in the corporate bond market, which affects a lot of your readers, Obviously sure every aspect of the financial markets that you could possibly name Was my responsibility and Daniel, you know, looking back at the 2008 financial crisis. Bring us back. Did you see it coming? You know I did, And that's I think the reason that I came onto Richard Fisher's radar screen in the first place was that before I joined the Fed, I was predicting that the housing bubble would not just present itself if you will. That it would present systemic risk as well. It would become a threat to the entire global financial system, and there weren't very many people saying that in 2005 in 2006, but I was and that really, you know, I think a lot of people at the Fed, including Richard Fisher himself weren't convinced. That what was happening in the subprime housing market was going to become this mammoth issue. To face down for central bankers all around the world, but they brought me on. They brought me into this said just in case just in case I was right. And they said Thanks, but no, thanks. No, no, no, no. There was definitely a point of validation after I came into the fed, But it wasn't very It wasn't really a cause for celebration because you're not celebrating. Millions of people beginning to lose their homes. The economy descending in the worst recession since the Great Depression, right, But how come no one took the threat more seriously? Well, it had been since the 19 thirties since the Great Depression that we had seen the phenomenon of nationwide price declines. Residential real estate was always kind of the local phenomena. And yet here we were, Despite the fact that Alan Greenspan and subsequently Ben Bernanke assured the American public This could never happen on a nationwide scale. And yet it did. So let's talk a little bit about the book specifically why now, why write this book? Now? Has this been a labor of love is it's been many years in the making. It has. It's certainly been a reason to pull myself away from my my family and my young Children, But by the same token, I felt that I had a responsibility.

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