Apr 14, 2008

Robert Rubin: No one foresaw the financial crisis

Asked for the views on the origins of the financial market turmoil, [Robert] Rubin said it was a "confluence" of a series of events that no one foresaw.

A 3-4 year period where the markets under priced risk, some unsound financial engineering that created AAA rated complex securities and a large increase in housing prices "all came together," he said.

It has been much broader and lasted much longer than anyone imagined, he said.

Asked when the crisis might subside, Rubin replied: "I have no idea."

He said there shouldn't be "any let up" by economic policymakers working on solving the crisis.

~ MarketWatch, "Rubin: Unsound Bush fiscal policy hampering crisis relief; Former Treasury Secretary blasts White House for weak dollar," April 14, 2008, by Greg Robb

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