Yellen: Not in Our Lifetimes
Please recall Janet Yellen's June 2017 prediction: "Not Another Financial Crisis in Our Lifetimes"
“Would I say there will never, ever be another financial crisis?” Yellen said at a question-and-answer event in London. “You know probably that would be going too far but I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will be,” she said.
Flash Forward December 11, 2018: Yellen Warns of Another Potential Financial crisis: 'Gigantic Holes in the System'
I commented: "When you are in charge of the outhouse, you sing its plumbing praises. When you give speeches for money, you mention the stench."
Permanently High Plateau
In 1929, just ahead of the great depression, Yale economist Irving Fisher was Jubilant. “Stock prices have reached what looks like a permanently high plateau,” said Fisher.
Bernanke in His Own Words
Also consider Bernanke: In His Own Words
- March 28, 2007: Chairman Bernanke said: “The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”
- May 17, 2007: Chairman Bernanke said: “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
- February 27, 2008: Chairman Bernanke said: "By later this year, housing will stop being such a big drag directly on GDP … I am satisfied with the general approach that we’re currently taking."
- February 28, 2008: Chairman Bernanke said: “Among the largest banks, the capital ratios remain good and I don’t expect any serious problems … among the large, internationally active banks that make up a very substantial part of our banking system.”
- June 9, 2008: Chairman Bernanke said: “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
- July 16, 2008: Chairman Bernanke said that Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.”
Trump's Three Point Claim to Fame
- Natural Ability: Trump says "I Know So Much About the Coronavirus Because of Natural Ability"
- 15 Headed to Zero: On February 26, in a White House Briefing, Trump foolishly discussed the then 15 total cases in the US. "When you have 15 people, and the 15 within a couple of days is going to be down to close to zero, that’s a pretty good job we’ve done," said Trump as noted in Coronavirus Week in Review: Top 10 Things That Happened.
- Trade Wars: Let's not forget "Trade Wars are Good and Easy to Win." For further discussion, please see Coronavirus Simulating a Full Blown Trump Trade War.
Mike "Mish" Shedlock