Former Dallas Fed insider, Danielle DiMartino Booth, spoke with SBTV about the inner workings of the Fed and how the Federal Reserve missed the train wreck which resulted in the 2007 Financial Crisis. Without being alarmist, Danielle presented a factual view of how leveraged and indebted our financial system has become.
Discussed in this interview:04:41 How did the Federal Reserve miss the 2007 financial crisis?08:24 Were the bailouts of failing banks avoidable?10:08 Why Lehman Brothers was not bailed out?13:38 Money printing has become an international contagion.15:55 Stock markets propped by stock buybacks.19:41 Will the Fed blow up the economy as it unwinds its balance sheet?22:18 The 'academic' problem of the Fed.23:13 Inversion of the yield curve.25:04 There is more 'tinder' to light a financial crisis now than 2007.26:58 How does the Federal Reserve view gold?27:55 Dollar's reserve currency status to stay?34:35 Can we ever trust the Fed?37:31 Will we see the Fed come out with a crypto coin?
Danielle DiMartino Booth spent nine years as an advisor to Richard W. Fisher at the Federal Reserve Bank of Dallas. Danielle left the Fed in 2015 to found Money Strong, LLC, an economic consulting firm and launched a weekly economic newsletter She is the author of Fed Up: An Insider's Take on Why the Federal Reserve is Bad for America. DiMartino Booth began her career in New York at Donaldson, Lufkin & Jenrette and Credit Suisse, where she worked fixed income and the public and private equity markets. Danielle earned her BBA as a College of Business Scholar at the University of Texas at San Antonio. She holds an MBA in Finance and International Business from the University of Texas at Austin and an MS in Journalism from Columbia University.