CNBC: January 18, 2013: FED 2007 Transcripts released... and show that the Rohr concerns over the markets were right (below), and Fed mostly asleep at the switch!!
Ex-St Louis Fed President and Fed Governor William Poole (now at Cato Institute) comes on CNBC to discuss the reality behind the early-mid 2007 Fed (his last year.) He admits, "...what we did not know ...is that there were so many banks that had a large, huge portfolios of sub prime paper ...financed with very short-term commercial paper, and practically no capital." Steve Liesman notes he was the first to recommend aggressive easing and liquidity measures right into August 7, 2007 FOMC meeting caution on inflation and confidence on the economy. He notes the entire 2004-2007 official US policy approval of subprime was the real problem.
CNBC: August 13, 2007: Calling at least an intermediate term top in the equities and citing critical lower supports that held intially but failed badly in the summer of 2008.
Back in early August of 2007 very few folks had a sense that the equity markets could be in serious trouble. Alan Rohrbach appeared on prominent early morning CNBC show Squawk Box at the top of the week cautioning that equity markets might fall sharply and the Fed would need to provide emergency intervention; which it needed to do exactly three days later.