Today In Bubble History

From the transcript of the Federal Reserve’s policy meeting on January 31, 2006:

"Needless to say, it’s fitting for Chairman Greenspan to leave office with the economy in such solid shape. And if I might torture a simile, I would say, Mr. Chairman, that the situation you’re handing off to your successor is a lot like a tennis racquet with a gigantic sweet spot."

-Janet Yellen to Alan Greenspan. Yellen was president of the Federal Reserve Bank of San Francisco at the time. She was promoted by Obama to her current position of Vice Chair of the Board of Governors of the Federal Reserve for a four-year term ending October 4, 2014. She simultaneously began a 14-year term as a member of the Board that will expire January 31, 2024.


"In Alfalfan terms, I’m just a sprout in the crop of otherwise experienced men and women. But I’m sure they would agree with me, without getting too dramatic, about the appropriateness of Henry V’s remarks at Agincourt -- and I’ll rephrase them -- economists and bankers now asleep (remember these are bankers) shall think themselves accursed that they were not here. I consider myself privileged to have been here, Mr. Chairman. This isn’t Agincourt, but it’s important. I’ve served under two saxophone players now, and I would say without question, you’re a leader of the very best kind, and I thank you for your leadership."

-Richard Fisher to Alan Greenspan. Fisher was president of the Federal Reserve Bank of Dallas at the time, a position he still holds.


"I’d like the record to show that I think you’re pretty terrific, too. And thinking in terms of probabilities, I think the risk that we decide in the future that you’re even better than we think is higher than the alternative."

-Tim Geithner to Alan Greenspan. Geithner was president of the Federal Reserve Bank of New York at the time, and was promoted by Obama to his current position of Treasury Secretary.

The Federal Reserve released this transcript a few weeks ago after keeping it from the public for six years. Transcripts from all subsequent years, including those containing the Fed's discussions during the Wall Street bailouts, remain secret.