If The Fed Ripped On It, You Can Bet They Saw It
And they say they didn't see it coming.
See November 1, 2005 Bear Stearns and Lehman Brothers Fed LOLs (and more via WSJ):
CHAIRMAN GREENSPAN. On the bottom of page 3, are these brokerage sector CDS? Is this the mix of their individual portfolios or their estimates of the total market?
MR. KOS. No, no. This is if you want to buy protection on, say, Lehman Brothers or Bear Stearns. This is the price of protection on these firms.
CHAIRMAN GREENSPAN. Oh, this is the actual credit default swap on Lehman Brothers or on—
MR. KOS. Yes, all eight of them.
CHAIRMAN GREENSPAN. This tells you a good deal about the individual firms. That’s interesting.
VICE CHAIRMAN GEITHNER. There’s a moral hazard in there, too, if you look at it. [Laughter]
CHAIRMAN GREENSPAN. I’m going back in the private sector. I’ve got to know who’s risky! [Laughter] That was off the record. [Laughter]
Looking back - something they're forced to do often because they consistently bumble the going forward - it was a dumb thing to say.
In 2014, we can look forward to reading what they were saying in 2008. We can only hope and pray it was approximately 35% more dumb (35% figure calculated using a complicated, esoteric JDA metric that is only known to the research hamsters in her brain that is 97% more accurate than Fed metrics that come up with bullshit like this) for maximum entertainment value.
Except for whatever parts they don't want us to have and won't give up:
In transcripts from all years, a very small amount of information received on a confidential basis from, or about, foreign officials, businesses, and persons that are identified or identifiable was subject to deletion. All deleted passages, indicated by gaps in the text, are exempt from disclosure under applicable provisions of the Freedom of Information Act.
What could be so bad that they'd have to (and be allowed to) edit out any chunks they like?