No New Financial Crisis in ‘Our Lifetimes’
Flashback June 27, 2017: Fed’s Yellen Expects No New 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.
Yellen Now Sees “Gigantic Holes”, Few Tools
Flash Forward December 11, 2018: Yellen Warns of Another Potential Financial crisis: ‘Gigantic Holes in the System’
Former Federal Reserve Chair Janet Yellen told a New York audience she fears there could be another financial crisis because banking regulators have seen reductions in their authority to address panics and because of the current push to deregulate.
“I think things have improved, but then I think there are gigantic holes in the system,” Yellen said Monday night in a discussion moderated by New York Times columnist Paul Krugman at CUNY. “The tools that are available to deal with emerging problems are not great in the United States.”
Yellen cited leverage loans as an area of concern, something also mentioned by the current Fed leadership. She said regulators can only address such problems at individual banks not throughout the financial system. The former fed chair, now a scholar at the Brookings Institution, said there remains an agenda of unfinished regulation. “I’m not sure we’re working on those things in the way we should, and then there remain holes, and then there’s regulatory pushback. So I do worry that we could have another financial crisis.”
Discussing the history of the Fed’s response to the crisis, Yellen said the Fed “probably could have done more” quantitative easing but was held back in part by public criticism of the Fed’s bond-buying program. “At the margin, I think that was something that concerned people about pushing asset purchases a lot further.”
Quite the Tune Change
When you are in charge of the outhouse, you sing its plumbing praises. When you give speeches for money, you mention the stench.
Mike “Mish” Shedlock
I’m an air traffic controller and once cleared Yellen’s plane to DC via a point called “BRIBE.”
This was right after one of the Jackson Hole meetings.
It’s like a bad cartoon show that never seems to end, but in this case the main characters of the show are serial arsonists.
yellen is a certified hypocrit and an intellectual dishonest
Shame on her on all those at FOMC!
Perhaps they would be more aptly described as the “Fed couches” in that case, no?
The Fed chairs job is to prop up the stock market.
The Fed job is to keep the banking profitable, no more, and no less. Remember, the Fed is owned by the banking system, and a part of it. Many people erroneously assume it is a part of the Federal Government because the President gets to appoint the chairman, but it is not.
If banks are profitable, the stock market is probably doing fine, and if the stock markets are fine, the banks are probably safe, so, if the Fed is doing it’s job of protecting banks, the stock markets will be protected somewhat, too.
The gilets jaunes of the western world must direct their anger toward the real masters of their misery : The corruption & manipulation of money by central banks
Finding the name “Yellen” and the word “scholar” in the same paragraph sorta made me cringe. Come to think of it, finding the names “Yellen” and “Krugman” complimenting the same article was also cringeworthy. How can economic academia crank out such harmful fools…by the thousands….?
Just how much money is Yellen making for all these speeches?
From the Clintons and Obamas, giving speeches at $500,000 a pop, is just a thin cover for bribery “thank-yous” from the folks that were made rich during their time in power…
++++++
Speaking in London in June 2017, shortly after leaving office, Yellen had said…
Former Federal Reserve Chair Janet Yellen told a New York audience…
“…I hope that it [financial crisis] will not be in our lifetimes and I don’t believe it will be,” said the unhealthy, fat, old chairwoman who utilized financial time bombs to “fix the economy”.