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 ...
Why does her statement make me nervous?
Because of things like this:
Barney Frank: “There is no housing bubble.”
https://www.youtube.com/watch?v=iW5qKYfqALE
Peace in our time
...
The Titanic is unsinkable.
I used the Google translation for the title.
Giving the Venetian banks Intesa will cost us 280 Euros each, happy?
Ruh roh.
Start?
Because it means the banks will be fine...the currency will be the problem next time out.
-Otto Von Bismarck
Because it's a BAD sign.
It's not just us worried. The DOW and the NASDAC are down 100.
Yellen is blatantly lying.
The fed can create a banking crisis anytime it wants to.
Several fed banks have gold vaults. For ex the federal bank in new york holds a lot of gold, almost all for other countries, but 1-2% of the gold is held for the us government.
My 401k is riding at 8% since January. Of course I am at 88% high risk but I’m not changing it anytime soon.
Only one Fed bank has a gold vault, the New York Fed. And as you noted, virtually all the gold is held on behalf of foreign governments and foreign NGOs. The amount of gold held there for the U.S. is also a small fraction of the gold held by the treasury in Denver, Fort Knox, and West Point.
TRANSLATION: “Run for your life!”
One very stupid woman.
Financial peace, anyway.
Works every time...
Yellen was a Federal Reserve governor back in 2007, and in a speech in Reno, Nevada back then she “brushed off concerns about a housing bubble (which was at the time spectacularly obvious in Reno.
She said then:
“While the decline in housing activity is significant and will continue for awhile longer, I think the concerns we used to hear about the possibility of a devastating collapse - one that might be big enough to cause a recession in the U.S. economy - have been largely allayed.”
[from the book “Fed Up” by Danielle DiMartino Booth, page 89]
As governor of the Federal Reserve Bank of San Francisco, the line spoken by Yellen in 2007 was similar to comments of hers demonstrating little concern (and a lot of ignorance) about the growing housing bubble, for years; though she presided over a Federal Reserve Bank whose territory included some of the hottest spots in that bubble.
Long before 2007, Yellen at eclipsed the height that the Peter Principle could ever be imagined to take anyone.
Nothing she says today should be taken as spoken by a true authority on any subject she speaks.
When you think why she felt the need to say that... kinda like when someone felt the need to say “Trust me..” — that’s when spidey senses should go into overload!
This is a very bad sign. Trouble is near!
When you KNOW a person speaking on a subject is certifiably one of the dumbest people on the subject they are speaking of, do you follow them or expect the likelihood things are the opposite of how that “authority” has spoken.
Just go to your Barnes and Noble Library and read through the book “Fed Up” by Danielle DiMartino Booth (use just the indexed pages on Yellen alone if you want to). Yellen’s ignorance is confirmed by her comments when she was a governor of the Federal Reserve at the Federal Reserve Bank of San Francisco, during the housing bubble, and (a) never saw it as a bubble of any concern, and (b) never saw it has representing any devastating risk to the banking system or the economy. She held her arrogant intellectual’s head high and spoke arrogantly against the concerns about the housing bubble, all the while her head was buried in the sands of her arrogance induced ignorance.
If she is confident now, my guess is we should really be very worried.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.