DISCUSS (0)
Heckuva Job, Bernanke!
How similar were the errors of judgment by the US Federal Reserve and the Federal Emergency Management Association? Bubble chronicler Daniel Gross notes several factors: an ideology that shapes the decision-maker, a lack of preparation for foreseeable systemic risks, a failure to act, and resource deployment problems. These were institutional failures of risk management rather than dealing with uncertainty. Next question: how do you distinguish a symptom from a cause of systemic risk?
