One of the kookiest moments last month came when Fed Chairwoman Yellen spoke about seeing no financial collapse in sight during our lifetimes
‘Would I say there will never ever be another financial crisis? No. Probably that would be going a little too far, but I do think that we’re much safer, and I hope that it will not be in our lifetimes, and I don’t believe it will be.’ (CNBCPlay video for quote on next crisis.)
That certainly calls to mind the times when Chairman Ben Break-the-banky pontificated about there being no housing bubble and no recession in sight:
Yellen’s predecessor, Ben Bernanke, once famously called problems in the subprime mortgage market ‘contained,’ a statement that would be proven wrong when the collapse of illiquid mortgage-backed securities cascaded through Wall Street and contributed to the worst economic downturn since the Great Depression.
Asked at a recent FOMC meeting about any possible problem with banks still being too big to fail, Yellen only said, ‘I’m not aware of anything concrete to react to.’
Nice to know she’s sound asleep while sugar plums dance in her head, bringing forth prophecies of good times for the rest of everyone’s foreseeable life … or, at least, the rest of hers.
This post was published at GoldSeek on 13 July 2017.
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