Ben Bernanke on Not Seeing the Crisis

Ben Bernanke was on the Diane Rehm show on Tuesday (unsolicited plug: one of the most serious talk shows around). Anyhow, there was much good back and forth on the show. I will skip over most of what the former Fed chair said (here's my comment on saving Lehman), but I do want to address his response to the question of why the Fed didn't see the financial crisis coming. Here's the sequence:

"REHM It's remarkable that you said that the recent financial crisis was the worst in human history, ev...