Geithner Boasts: ‘We Stretched the Fed’s Authority Well Beyond What Most Normal Humans Were Comfortable With’

EXCERPT:

GEITHNER: "They were mistaken in their belief because it was our view to try to save them. Our problem was our needs at that point. And remember we’ve had stretched the fed’s authority well beyond what most normal humans were comfortable with. And that had proven deeply inadequate to save the system from the risk of a panic, from tipping into panic, because we learned something that most countries learn overtime which is that in the end, you need a more powerful mix of guarantees and capital to stop a run. And you know ultimately, Congress, in his wisdom, largely to the credit of Hank and Ben, gave us a sufficient set of tools that we could avert the risk of the Great Depression, but not soon enough to give us the authority to prevent all the damage.”