What Obama the Candidate Said About 2008 Crisis

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Sept. 16 (Bloomberg) -- Bloomberg chief Washington correspondent Peter Cook revisits his exclusive interview with President Barack Obama on the day of the Lehman bankruptcy in 2008 while he was a Democratic candidate for President of the United States. He speaks on Bloomberg Television's "Market Makers."

The market for long time to absorb the problems that it didn't have in bear stearns and the idea that taxpayers can continue to be on the hook for firm after firm after firm, i think is a real problem.

Whether it is fannie mae and freddie mac or some of the investment banks, at some level, what you have is a situation in which investors and management at these firms were taking extraordinary risks with enormous upside when the market was good, but you can't have a situation where you expect the taxpayer to foot the bill when times are bad.

And extruder a time for you to have had an exclusive with the president.

What do you remember most from that interview?

First of all, we both look a little older these days, i hate to say.

What i remember most is what a critical moment that was in the campaign.

This was september, right before the fall election.

He and john mccain going toe to toe and hank paulson was making these decisions and then bernanke was making these decisions and at these moments, he backed the decision not to bail out lehman brothers.

It has been controversial and we're are still debating it today.

Just a few weeks later, we had the biggest bank a lot in u.s. history and president obama backed it then as senator obama.

So it was a crucial moment.

I remember everyone waiting to see what he had to see it -- had to say about lehman brothers

This text has been automatically generated. It may not be 100% accurate.

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