2 of 4
The regulator
The regulator
"Low rates won't do anything to handle the real issue for these companies, which is solvency."
William Poole, former president, St. Louis Federal Reserve

After predicting in 2002 that Fannie and Freddie couldn't handle the strains of a credit crisis, Poole saw his prophecies come true on Sept. 7 when the government stepped in to bail out the lenders. According to Poole, that bailout, coupled with the Bear Stearns rescue, made a Lehman save all the more difficult. "Barclay and Bank of America asking for federal assistance--that never would have happened before," he says. "But the Fed made the right decision this time."

Poole is less pleased with the Fed's strategy of keeping rates low. "I don't understand the case for it," he says. "It's not good federal policy to simply respond to declines in the stock market, and I'm concerned about inflation in the long run."

NEXT: The investor
Last updated September 18 2008: 11:43 AM ET
More Galleries
5 biggest share buybacks of 2014 Stock repurchases are booming. These five companies are ready to spend over $79 billion on buybacks. More
10 horrifying corporate mascots McDonald's Happy is part of a long lineage of creatures great and small that shill for products and mortify consumers. Mr. Mucus, anyone? More
5 best cities to launch a career The top spots in the U.S. for new grads to land a job -- and actually enjoy life -- according to financial site WalletHub. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.