Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

3 of 10
BACKNEXT
Great Recession
The Fed's crystal ball often seems to be broken. Just months before Lehman Brothers went belly-up, Fed Chairman Ben Bernanke told Congress he expected only small banks to fail as a result of the housing bubble bursting.

"I don't anticipate any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system," he said in February 2008.

Lehman filed for bankruptcy in September.

In July, Bernanke also claimed Fannie Mae and Freddie Mac were "in no danger of failing." The Fannie and Freddie bailout that followed is on track to be the most expensive government rescue of the financial crisis. It's at $153 billion and counting.



NEXT: Everyone spikes the punch bowl
Last updated March 24 2011: 3:05 PM ET
More Galleries
Banned! 10 things you won't find in China China says it wants to open its economy more to the rest of the world, but Beijing keeps a tight grip on technology and access to media. These 10 items are still off limits. More
A morning at the AltSchool, an education startup that Silicon Valley is crazy about The AltSchool is a system of "micro schools" and an education software maker that has raised about $133 million from investors like Andreessen Horowitz and Mark Zuckerberg and Priscilla Chan's philanthropic fund. More
Coolest cars for $18,000 These are the best budget cars, according to the experts at Kelley Blue Book. More

Special Offer