The Fed asleep at the wheel

The New York Times published the following article which clearly shows that in 2006 the Fed Governers had no idea what they were doing and were clearly asleep at the wheel.  Could the whole GFC have been avoided if the US was controlled by sensible and rationale Fed Reserve staff - maybe not as the problem was too systemic.   In recent days Obama has asked for a further rise in the US debt ceiling, a further indication that all is not beer and skittles in the US Government, despite corporate America showing signs of growth and profitability.

The NY Times article can be found using the following link
http://www.nytimes.com/2012/01/13/business/transcripts-show-an-unfazed-fed-in-2006.html?_r=1