Yellen: I don't believe we'll see another financial crisis in our lifetime(2017) | Hacker News Reader

Yellen: I don't believe we'll see another financial crisis in our lifetime(2017)

foxbusiness.com

11 pointscft12 comments

She isn't wrong so far, if "financial crisis" means a massive recession.

She also indicates what kind of financial crisis she means:

> "Yellen said the architecture of the financial system has changed in ways that has made it safer for all parties involved, citing a number of factors including the Fed’s annual stress testing practices that simulate a crisis-like situation including significant swings in the stock market, a decline in home prices and a decline in the unemployment rate."

In 2008, I was literally one day away from withdrawing every dime I owned from the bank, because I couldn't be sure the bank would survive. A 15% drop in the Dow is nothing like a real crisis.

Your deposit is insured. But sure, participate in panic.

Let's say I need to withdraw my savings for whatever reason next week but my bank goes bust tomorrow. How long will it take before the FDIC insurance pays out?

Financial crisis means a crisis in the financial system, which causes systemic capital risks and lack of faith in institutions. This leads to large scale defaults and inefficient allocation of capital, leading to a recession. But because banks are weak or broken it’s hard to leverage into a better economy so it sticks for a long time.

We've had at least one recession every decade. Why on earth would that cycle stop now?

There are known unknowns, but worse are the unknown unknowns.

Idk, what hit me most were mostly unknown knowns.

Lol'd at this.

Or the known knowns which I just ignored.

Shouldn't an obtuse statement like this denying the basic reality of history, economics, politics disqualify someone from from any high level government position?

Yes. I wonder who else has made obtuse statements like this who should be disqualified for any high level government position?

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