LOL: Janet Yellen doesn’t think an economic collapse will occur in ‘our lifetimes’

Today’s economic environment is an interesting one: there are several bubbles in the market, public and private debt levels are sitting at all-time highs and central banks worldwide have immense balance sheets. Suffice to say, when the next economic collapse occurs, it’ll be ugly.

But one central bank head doesn’t think another financial crisis will happen in “our lifetimes.”

Speaking at a question-and-answer session in London on Tuesday, Federal Reserve Chair Janet Yellen believes that another economic collapse will not occur because the banking system has undergone a series of reforms over the last decade, according to Reuters.

“Would I say there will never, ever be another financial crisis?” she said. “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.”

With this in mind, Yellen doesn’t think would be a prudent step to reverse those regulations.

Yellen further iterated that the Fed will continue to raise interest rates at a gradual pace.

“We think it will be appropriate for the attainment of our goals to raise interest rates very gradually to levels that are likely to remain quite low, although there is uncertainty about this, to remain low by historical standards for a long time,” she said.

In relation to the $4.5 trillion balance sheet the central bank has accumulated since the Great Recession, Yellen confirmed it would be reduced “gradually and predictably,” adding that “some asset valuations look high.”

Akin to her European Central Bank (ECB) counterpart, Mario Draghi, she doesn’t think a financial crisis will unfold and it doesn’t appear that she believes there are any bubbles in the economy. What do these central bankers do all day?

The world is drowning in debt and economic growth is still not what it used to be. It’s scary to ponder what Yellen would want to do when the next recession takes place.

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Comments

  1. JRATT1956 says:

    Everything is going great, the Bankster’s are in check, the stock market is at an all time high, what could go wrong? I think Janet age 71, is looking at the few years she has left and can say nothing really bad will happen before she takes the dirt nap.
    We will see a recession, stock market correction, poor economic growth for years to come because of all the debt.
    But these Bankster’s see it all as a buying opportunity, nothing more. The lost jobs, homes, cars and destroyed lives are just statistics to these elitist, nothing more. Their families and friends will continue to do just fine.

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