Posted on 06/27/2017 11:22:33 AM PDT by HokieMom
Fed Chair Janet Yellen said Tuesday that banks are "very much stronger" and another financial crisis is unlikely anytime soon.
Speaking during an exchange in London with British Academy President Lord Nicholas Stern, the central bank chief said the Fed has learned lessons from the financial crisis and has brought stability to the banking system.
Banks last week passed the first round of the Fed's stress tests to see how they would perform under adverse conditions like a 10 percent unemployment rate and turbulence in commercial real estate and corporate debt.
"I think the public can see the capital positions of the major banks are very much stronger this year," Yellen said. "All of the firms passed the quantitative parts of the stress tests."
She also made a bold prediction: that another financial crisis the likes of the one that exploded in 2008 was not likely "in our lifetime." The crisis, which erupted in September 2008 with the implosion of Lehman Brothers but had been stewing for years, would have been "worse than the Great Depression" without the Fed's intervention, Yellen said.
Yellen added that the Fed learned lessons from the financial crisis and is being more vigilant to find risks to the system.
"I think the system is much safer and much sounder," she said. "We are doing a lot more to try to look for financial stability risks that may not be immediately apparent but to look in corners of the financial system that are not subject to regulation, outside those areas in order to try to detect threats to financial stability that may be emerging."
(Excerpt) Read more at cnbc.com ...
This won’t even make a dent in the profits of the doomsayers.
Last year this time there was this effort by some person/entity to declare that by October, the nation was going to come to a financial end. Why it was inevitable.
Up until recently you could go to KitCo and find an add there by a guy being called the Trump Prophet, for predicting Trump’s victory. He’s now predicting financial uncertainty.
I get so tired of this incessant noise.
OK.
With all the perma bears saying we are doomed, I don’t worry.
When the fed chief says we will never crash, I want to go to hard metals and lead and prepare for Fallout 5, live.
Interesting timing. Italy bailed out two banks this past weekend, to the tune of between 5 and 15 billion.
Why does her statement make me nervous?
I almost reached for the phone to call my broker just from the headline. Looking at Yellen “our lifetime” is not that long.
Count the number of gold bars. Determine which of the gold bars are just gold plated Tungsten bars. Subtract the number of Tungsten bars from the bars in the depository. This sum should equal the total number of gold bars you really have. Keep this number secret. If the real number of real gold bars was known it would cause a collapse in the economy.
Uh oh-start buying gold, silver, and ammo.....
Why is that winning?
Big Banks made record profits during the financial collapse. And now they are even stronger plus they escaped prosecution.
They are not ‘stronger’, they are ‘emboldened’.
Iceland’s banking system is ‘stronger’ after their banks were punished.
The US banking system is wearing a grin. They got away with it, so far.
I have bought a lot of stocks over the years. Two sectors I NEVER invested in were: 1:) Retail, 2:) Banks.
Over time the return was never there, for a long term investor the return was never there.
Is she still having fainting spells?
Interesting idea, except that the Fed does not hold any gold for the U.S. government. Fort Knox is under the control of the Treasury.
Well, made me think of this...
“While people are saying, There is peace and security, then sudden destruction will come upon them as labor pains come upon a pregnant woman, and they will not escape.”—1 Thess. 5:3
Now why, in 1987, would a metals company build a tool for pouring Tungsten ingots in the exact shape of a gold bar?
It just means that the banks are hard-wired to the government printing presses. Feel a need another cash fix - just press the button.
This increases the chance of financial crisis in the near future.
I have no idea.
Banks are very much stronger because the Fed has given them nearly 10 years of zero interest rate borrowing from the Federal Reserve, while loaning to the rest of us at anywhere from 4%-20%
Quantitative Easing was also passed through the Fed’s primary dealers - borrow 0% money to buy Treasuries yielding 3%, then sell them to the Fed at a profit.
Banks now have massive reserves on deposit at the Fed.
All that money was strip-mined from the American people.
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