Yellen: "I Don't Believe We Will See Another Crisis In Our Lifetime"

[DamianTV]

http://www.zerohedge.com/news/2017-...lieve-we-will-see-another-crisis-our-lifetime

If there was any confusion why the Fed intends to keep hiking rates, even in the face of negative economic data and disappearing inflation, it was put to rest over the past 2 days when not one, not two , not three, but four Fed speakers, including the three most important ones, made it clear that the Fed's only intention at this point is to burst the asset bubble.

First there was SF Fed president John Williams who said that "there seems to be a priced-to-perfection attitude out there” and that the stock market rally "still seems to be running very much on fumes." Speaking to Australian TV, Williams added that "we are seeing some reach for yield, and some, maybe, excess risk-taking in the financial system with very low rates. As we move interest rates back to more-normal, I think that that will, people will pull back on that,

Then it was Fed vice chairman Stan Fischer's turn, who while somewhat more diplomatic, delivered the same message: "the increase in prices of risky assets in most asset markets over the past six months points to a notable uptick in risk appetites.... Measures of earnings strength, such as the return on assets, continue to approach pre-crisis levels at most banks, although with interest rates being so low, the return on assets might be expected to have declined relative to their pre-crisis levels--and that fact is also a cause for concern."

Fischer then also said that the corporate sector is "notably leveraged", that it would be foolish to think that all risks have been eliminated, and called for "close monitoring" of rising risk appetites.

All this followed the statement by Bill Dudley, who many perceive as the Fed's shadow chairman, who yesterday warned that rates will keep rising as long as financial conditions remain loose: "when financial conditions tighten sharply, this may mean that monetary policy may need to be tightened by less or even loosened. On the other hand, when financial conditions ease—as has been the case recently—this can provide additional impetus for the decision to continue to remove monetary policy accommodation."

And finally, it was Yellen herself, who speaking in London acknowledged that some asset prices had become “somewhat rich" although like Fischer, she hedged that prices are fine... if only assumes record low rates in perpetuity:

“Asset valuations are somewhat rich if you use some traditional metrics like price earnings ratios, but I wouldn’t try to comment on appropriate valuations, and those ratios ought to depend on long-term interest rates,” she said.

It was not all doom and gloom.

Responding to a question on financial system stability, Yellen said post-crisis regulations (and $2.5 trillion in excess reserves which just happen to be fungible and give the banks the impression that they are safe) had made financial institutions much “safer and sounder.”

"Will I say there will never, ever be another financial crisis? No, 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."

...

Um...

Bwa ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha hah ha wah ha ha hah haw ha ah aaah ha ha ha bah ha ha ha bah ha ha wah ha ha ha ha ha!

Lets see how we are doing at the end of October...

 

[jkr]

Except for the one that's been going on for 114 years

 

[CaptUSA]

Which mean, "time to clutch your wallet and stack your metals."

Such stupid statements always seem to be harbingers.

 

[specsaregood]

Which mean, "time to clutch your wallet and stack your metals."

Such stupid statements always seem to be harbingers.

Or it means kiss your asses good bye.

 

[oyarde]

Well now , whose lifetime ?

 

[r3volution 3.0]

"We will not have any more crashes in our time." - Keynes, 1927

 

[Occam's Banana]

Will I say there will never, ever be another financial crisis? No, probably that would be going too far.

So she thinks that saying there will "never, ever be another financial crisis" is "probably [...] going too far?"

The lady doth not protest enough, methinks ...

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.

Which mean, "time to clutch your wallet and stack your metals."

Such stupid statements always seem to be harbingers.

Déjà vu all over again?

https://www.youtube.com/watch?v=HQ79Pt2GNJo

 

[Danke]

So she thinks that saying there will "never, ever be another financial crisis" is "probably [...] going too far?"The lady doth not protest enough, methinks ...Déjà vu all over again?https://www.youtube.com/watch?v=HQ79Pt2GNJo

 

[timosman]

 

[acptulsa]

Paging [MENTION=17293]Zippyjuan[/MENTION]. Paging [MENTION=17293]Zippyjuan[/MENTION]. Your boss is being laughed at. Your boss is being laughed at, and with good reason (with all these bubbles forming). Your spin is required.

 

[enhanced_deficit]

Well now , whose lifetime ?

Maybe this guy's.

 

[shakey1]

 

[angelatc]

 

[brushfire]

There will be another crisis... They wont call it a crisis, but it will come. When it does, its likely to have a cute name like "the great recession" or "the huge slowdown", or something stupid like that.

Regardless, at some point people will have to come to terms with reality. Folks need not wait until the economy comes down with a "touch of aids", or a "smidgen of ebola". The writing is on the wall.

 

[anaconda]

Peter Schiff said, regarding Yellen's comments, "This is as close as you can get to a guarantee that another financial crisis is right around the corner, must likely worse than the last."

https://www.facebook.com/PeterSchiff/?hc_ref=NEWSFEED

 

[Zippyjuan]

Peter Schiff said, regarding Yellen's comments, "This is as close as you can get to a guarantee that another financial crisis is right around the corner, must likely worse than the last."

https://www.facebook.com/PeterSchiff/?hc_ref=NEWSFEED

Schiff has been calling for another crisis every year since 2008. Will we see another recession in our lifetime? Pretty much guarantee it. Will it be a crisis on the scope of the Great Depression or the Great Recession? Could happen but such major events tend to be farther apart.

 

[Dr.3D]

Which mean, "time to clutch your wallet and stack your metals."

Such stupid statements always seem to be harbingers.

Yep, just like, when somebody said, "Not even God could sink the Titanic."

 

[Dr.No.]

Peter Schiff said, regarding Yellen's comments, "This is as close as you can get to a guarantee that another financial crisis is right around the corner, must likely worse than the last."

https://www.facebook.com/PeterSchiff/?hc_ref=NEWSFEED

Well, Peter Schiff has called twenty two of the last two recessions.

 

[timosman]

The performative "I don't believe" is a tell.

 

[devil21]

------------

The performative "I don't believe" is a tell.

Be-lie(ve)

Go be the lie.