Fed Chair Janet Yellen made financial news today when she proclaimed that she expects No New Financial Crisis in ‘Our Lifetimes’
U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.
“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 said it would “not be a good thing” if reforms of the financial services industry since the crisis were unwound, and urged those who had helped manage the fallout at the time to be vocal in preventing such a dilution.
U.S. President Donald Trump has said during his election campaign that he would cut banking regulation. The U.S. Treasury Department earlier this month proposed easing up on restrictions big banks now face in their trading operations.
Yellen declined to comment when asked about her relationship with Trump but said she had a good working relationship with U.S. Treasury Secretary Steve Mnuchin.
Whose Lifetime?
Reuters interpreted “our lifetimes” as her lifetime. It’s not clear what she meant, but “her” seems a stretch.
Bubbles An Illusion?
Asked about share price valuations by a member of the audience, Yellen said “by standard metrics, some asset valuations look high but there’s no certainty about that.”
Apparently, Yellen has lost her eyesight.
Fed’s Kashkari Says U.S. Faces Another Financial Meltdown
With a tip of the hat to “StockCats” for the link, inquiring minds may wish to consider this alternate view from November 17, 2016: Fed’s Kashkari Says U.S. Faces Another Financial Meltdown.
Banks are still too-big-to-fail according to Minneapolis Federal Reserve Bank President Neel Kashkari. He told the FOX Business Network’s Maria Bartiromo there’s a high probability of another financial crisis and bailout.
“I’ve heard from senators and congressmen and women on both sides of the aisle who are concerned that the biggest banks are too-big-to-fail. We analyzed the history of financial crises: we’ve now got a 67% chance today of another financial crisis in the next century and another bailout,” he said.
The Next Century?
Only 67%? That’s the best you can do? Can you narrow you down a bit? Will Yellen still be alive or not?
It’s Magic
I have it figured out. If we all say the magic words, nothing bad can possibly happen.
More seriously, Yellen’s words are a huge contrarian indicator quite reminiscent of Bernanke’s “Subprime housing crisis is contained” statement.
Mike “Mish” Shedlock
That all depends on the length of our lifetime. Maybe we can provoke a nuclear war with Russia or China, then we won’t have another financial crisis in our lifetime. Problem solved…sort of.
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Perhaps she meant in Seth Rich’s lifetime.
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They believe now as they have always believed prior, that they’ve got this. That their “magical powers” can suspend the insanity indefinitely. While it defies logic given their history, I believe they have only strengthened their hold on our economy. That hold is not control of banks or any direct financial lever. I think their power comes from the fact that amidst of delusions that everything is just fine, we ALL in our gut know it is anything but, and that knowledge, along with the belief that given we all live within these glass houses, no one an afford to throw stones….that there is insufficient profit in collapse and that a collapse would potentially take us back to the stone age.
This is simple economic intimidation from the richest to the poorest, we are ALL dependent upon the delusion continuing. It’s the only thing beyond complete insanity that explains how we can see so much irrationality…denial…stupidity. Too stupid to be stupidity.
Confidence is the only true currency, and like our money, it doesn’t seem to matter how much of our confidence is based upon fakery. The only thing important is to BELIEVE.
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The beatings will continue until morale improves .
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The fed chair says no more financial crisis (for the foreseeable future)?
OMG that’s the kiss of death for the economy.
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Everything is Sunshine, Lollipops and Rainbows dudes and dudesses…
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its almost impossible to find the text of her remarks, (the internet is the worlds biggest liar) just another example of how fake news gets started.
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What a fool believes, Doobie Brothers, but I date myself.
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Actually what comes to mind is “Pure As The Driven Snow” for Ms Yellon..
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“Fed’s Kashkari Says U.S. Faces Another Financial Meltdown”
…
Compare track records
Yellen – utter mush
Kashkari – Aide to Hank Paulson at Treasury. Paulson brought him over from Goldman Sachs in 2006 when he assumed post of Secretary. It came out after the fact that Paulson had drawn up plans for TARP MONTHS BEFORE THE MELTDOWN (maybe as early as 2007).
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Time to stock up on food and ammo.
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These arrogant clowns simply cannot keep their mouths shut.
And it will lead to their undoing.
Already underway.
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I,m 92 ,I expect a major meltdown before I,m gone, the amount of economic ignorance among the ( economist ) is staggering.
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.
” IMF cuts U.S. growth outlook, cites uncertainty around Trump policies ”
http://money.cnn.com/2017/06/27/news/economy/imf-cuts-us-growth/index.html
.
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Not surprising at all, the IMF is not the least bit interested in Making America Great Again, and CNN is pathetic crap.
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That’s Bubble talk if ever I have heard any.
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If she did say it, it confirms my belief that those in power haven’t a clue what they are doing. The system is just too complicated for anyone to understand and control! Our past Prime Minister, Gordon Brown, claimed his Government had “bought an end to boom and bust”! These people are living on another Planet!
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Bubble is economist jargon and explains nothing ,nada, the crisis is not in the financial sphere but in the production line i.e.: global overproduction.
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“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.
The KEY word is “OUR”.
And I assure YOU that “OUR” does NOT apply to “YOU”.
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You are probably right there. When Central Banks control the money supply, or whatever means of exchange they choose, can ban cash and precious metals, they can truly become the high priests of the modern world and the rest are serfs.
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The Dollar fell 2.5% in two days. This is a crisis for someone.
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I remember nearly 2 years ago Mish commented that the 69 year old Yellen looked 80. With an average life expectancy of 84 maybe we havn’t long to go.
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Considering Janet Yellen is 70 and her husband is 77, she is probably correct. In her and her husbands lifetime we will probably not have a crisis. Too bad for everyone else. Party on dude and dudettes.
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The translation of Latin abra cadabra to English is “from one thing to another thing”.
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So that’s it!
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What a preposterous thing for Yellen to say.
Who does she think she is? Ms. Cleo?
None of them saw the 2008 meltdown coming until it was right on top of us.
What makes her any better than Bernanke?
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“What makes her any better than Bernanke?”
She lacks the courage to act.
In other words, she’s tightening or at least trying to.
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Hubris bites us all in the ass sometime.
She’s probably right if the next crisis is the same as the last with the same causes. However, the next one won’t be the same & the breakage might be outside the banks. Sovereign, insurance?
The fixes in place are for the last war. The next war will be a different battleground needing different defences and if she’s clever enough to know the below ahead of time she’s wasted in her job:
WHEN IN TIME?
WHERE IN THE SYSTEM (or geography)?
WHAT CAUSES?
WHY IT WILL HAPPEN?
HOW IT WILL HAPPEN?
We can all guess at the answers but since no one can be 100% sure of anything, hold a little gold, diversify & question everything – most of all the assurances of tptb.
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I’m expect that the market will shit all over itself (losses of 33%+) several times between today and the time I should expect to die of natural causes.
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Yes but it won’t be a financial crisis. Her point, and its worth taking, is that the banks are in much better shape, they are stress tested against derivatives, and when one of them (like DB) gets in trouble, the others (Chase and Citi) take the bad paper. In the parlance of stolen property, the process includes a fence who can’t be touched, the mystery Belgium bond buyer, the Swiss CB loading up on S&P futures. It’s buying merchandise from the police evidence room. It’s all been vetted. You have to take it for what it is.
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it reminds me of the statement from Gordon Brown:
‘We have abolished the cycle of boom and bust……’
Or for those of you who know Michael Fish (BBC weatherman).
‘there is no chance of a Hurricane hitting the Uk’
Hahahhahhahhahha
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Bank models are complete and utter nonsense. They predict nothing, and are best completely ignored. They are only rationalizations dreamed up by conflict of interest “researchers” to help bankers to continue confiscating stuff from people via the printing press.
Meanwhile Joe average continues to move slowly backward as bank printers confiscate his stuff.
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“we’ve now got a 67% chance today of another financial crisis in the next century and another bailout”
The fact that Kashkari appears, in contrast, to be sane, speaks volumes. I say that not because 67% is absurdly low given that another crisis is an absolute certainty, but rather that he specifically says 67% as opposed to 66% or 68%! The idea that such a fine-tuned, numerical economic prediction is even remotely possible is laughable on its face.
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He may have meant that there is a 67% chance that we will not see 3% annual growth rates again in Kashkari’s lifetime.
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How decidedly odd to think this way. Unless it”s a plot to fool the sheeple into more reckless gambling.
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What remains of Yellen’s lifetime?
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This simply means the Fed is hiking rates and exiting QE.
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In fact, if the FED can “normalize”rates and have the hold S&P 500 at 2150, thats kind of a home run for them.
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It has always amazed me, that with so many ignorant participants, even at the highest level, making money in the market is not easier.
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Does this mean that we should be worried for Janet Yellen’s health?
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The FED, Just like all politicians, say what they want to be true. On occasion, it is also actually true.
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Sounds familiar. Have we reached…”a permanently high plateau” ?
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You are all much too critical. Yellen is a genius of market timing. In retrospect we will all see that she rang the bell at the last exit for the current market cycle. You just have to know how to decode the statement.
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It is obvious that another crisis is coming. The G20 changed the rules for depositors in late 2014. Congress then passed a bill written by Citi, protecting banks with huge derivatives exposure.
Big Red Flags are waving in the financial breeze.
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“she does not believe that there will be another financial crisis for at least as long as she lives”
Yeah, they’re just so able to predict the future:
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The Steve Miller Band has some of the worst lyrics. Can’t rhyme to save their lives.
Some decent bands came out of San Francisco. They were not one of them
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The more “financial crises” we get to have, the better off we are.
“We” being all those not directly in the leeching rackets underpinned by the current, almost 100% extractive, “financial system.”
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Reblogged this on World4Justice : NOW! Lobby Forum..
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My first thought was, Janet has been diagnosed with a terminal illness and doesn’t have very long.
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Another loser, John Maynard Keynes said In 1927, he wrote, “We will not have any more crashes in our time.”
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