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.
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.
I think I know what “no crisis like 2008 in our lifetime” means. The poor woman must be terminally ill. That or maybe she/they know the next one will be worse than 2008.
“Had been stewing for years….” Maybe that’s why, as the article later pointed out, it caught the Fed completely off guard.
I do like her giving the Fed credit for preventing the Greater Depression. Rich.
The Fed, if you recall actual history, prolonged a downturn, a recession, into the Great Depression of the 1930’s. They have experience wrecking the economy. And it’s really too soon to tell about the Greater Depression, although I’ve seen stats from two economists that show the 2008 crisis was every bit as bad as that of the 30’s and that we have yet to recover from it.
Wait! Now I know what she means. She knows the 2008 crisis never really ended. Therefore its continuation this year or next coupled with a new worsening crash technically won’t be another crisis – it’ll be the same one.
That or she’s sick.
Thoughts and prayers.