Yellen: Banks 'very much stronger'; another financial crisis not likely 'in our lifetime'

"very much stronger" words that Yellen used to describe the banks now. Oh and another financial crash like 2008 in our life time is very unlikely. Hurray.

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.

www.cnbc.com...

Banks passed a Fed stress test that simulates a 10% unemployment level and "turbulence" in commercial real estate and corp debt. Wonder if the banks would pass a bundling of very poor housing assets by banks that were rated (some would say lied about) as AAA, sold around the world in mutual funds that went bad and tanked the world econ?

Banks last week passed the first round of the Fed's stress tests to see how they would perform under adverse conditions like a 10 percent unemployment rate and turbulence in commercial real estate and corporate debt.

"I think the public can see the capital positions of the major banks are very much stronger this year," Yellen said. "All of the firms passed the quantitative parts of the stress tests."

Yellen thinks the system is stronger and sounder. They are looking a lot "more" for financial stability risks and into the financial "corners" of the system for things that are not regulated. So the banks are sound now?

"I think the system is much safer and much sounder," she said. "We are doing a lot more to try to look for financial stability risks that may not be immediately apparent but to look in corners of the financial system that are not subject to regulation, outside those areas in order to try to detect threats to financial stability that may be emerging."

a reply to: seasonal

At the SAME EXACT TIME the head of the Bank for International Settlements (BIS) says a major global recession may be coming back "with a vengeance", citing China and similar emerging markets that seem to be 'overheating'.

See for yourself: link

I really hope Janet Yellen and the criminals like her have to eat their words when sh*t hits the fan! All economic indicators are that the US and global economy are in a slowdown (MEANWHILE the Fed seems to be tightening their monetary policy after printing ridiculous amounts of fiat currency for 9 years straight)

a reply to: seasonal

Considering banks still haven't opened their lending windows fully while accepting mad stacks of digital cash from the litany of QE programs, I would say banks will be the last to fail when this house of cards collapses. They're sitting on their own fortune while in 2008 they were sitting on someone else's fortune.

This would be 404'd even in the predictions forum here

That's the biggest lie I've ever heard!

No one can accurately predict value, much less stability over a lifetime

But she's an old maid; she only has 20 years left

a reply to: burdman30ott6

Plus, with Bail-Ins they can raid everyone's 401K, IRA, savings and checking accounts and "in return" give depositors a piece of paper that acts almost like a "stock" in the bank.

At the end of the day, it's us, the People who will have everything wiped out while the banksters and elites lock the doors and laugh at us desperate, lower creatures.

a reply to: FamCore

But we can sleep easier knowing that no matter how rough it gets for we average Americans, the banks are "very much stronger" and will survive whatever may come.

a reply to: seasonal

Their bubble is about to burst.

Goods prices are up. Stocks are up. War is looming.

I don't think it will be as drastic as 2008 however, despite many claims. No proof, just my own opinion.

In the oligarchy, the banks will only collapse if orchestrated to do so.


"Our Banks Own Airports, Control Power Plants and Much More—How Can We Stop Them from Controlling the Lifelines of the Economy?"
Aren’t there rules against that? And where are the banks getting the money?

Giant bank holding companies now own airports, toll roads, and ports; control power plants; and store and hoard vast quantities of commodities of all sorts. They are systematically buying up or gaining control of the essential lifelines of the economy. How have they pulled this off, and where have they gotten the money?

Source

a reply to: JinMI
I think it may be somewhere between the post 9/11 economic crises and the '08 housing bubble crises in severity. Not world shattering, but certainly a pain in the ass.

originally posted by: dreamingawake
In the oligarchy, the banks will only collapse if orchestrated to do so.


"Our Banks Own Airports, Control Power Plants and Much More—How Can We Stop Them from Controlling the Lifelines of the Economy?"
Aren’t there rules against that? And where are the banks getting the money?

Giant bank holding companies now own airports, toll roads, and ports; control power plants; and store and hoard vast quantities of commodities of all sorts. They are systematically buying up or gaining control of the essential lifelines of the economy. How have they pulled this off, and where have they gotten the money?

Source

They literally make money out of thin air. When you get a loan, the bank just wishes the $$$ into existence.


The banks can control growth of industries they "like" by granting loans. IF you are in an un "liked" industry-good luck.

a reply to: seasonal

According to the regulations of our fractional-reserve banking system; for every $1 deposited banks can lend $9 to $13. The literal definition of money from out of nowhere. You can see why banks were ecstatic when direct deposit was made possible.

didn't they come out with some kind of overly optimistic prediction just before the housing bubble blew it's top also???
my first reaction when I read the title to this thread was:
lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.lol.
can you tell I don't believe her???

If somebody like the head of the Fed comes right out and claims financial strength and stability, with no likelihood of a crash coming any time soon, expect the worst. I don't know why they bother to lie to us....if it wasn't for their ability to create money simply by hitting a few computer keys, we would have crashed and burned long ago.

Fractional reserve banking is, by design, a disaster waiting to happen. If you have the money in your bank, go in and ask for like, $5000 in cash for withdrawal, and see how they hem and haw and claim you have to call them days in advance for them to have the money, and how they 'just don't have it'. It happened to me. This is a large national bank, not a regional one.

I carry the minimum balance and put money in as needed because I have a really negative vibe. Look how, previous to the crash of 1929, how things were at record highs and everybody was making money. When everything is going gangbusters, it is time to short the market and await the inevitable.

Ask yourself if the economy is *really* going well, or if it is being propped up.

She's stupid or in on it. Either way, if I was an investor (the market has turned me off, better of stuffing it in my mattress or buying gold) I'd be on edge.

Dang, FissionSurplus beat me to it but it bears repeating.

If somebody like the head of the Fed comes right out and claims financial strength and stability, with no likelihood of a crash coming any time soon, expect the worst.

With that said, smart money is out of the markets.

Cant be right . Goes against at least 10 current economic doom porn threads...

a reply to: FissionSurplus

Very smart of you to keep a minimum balance with your banks. Open a foreign account if you can with a stable financial institution as back up. Our American economy has been propped up since the gold standard was abandoned. People should teach their children at a very early age about financial responsibility, money, barter, value, real estate as a prudent security measure. Elites do. Credit in all its forms is nothing more than the currency of slaves. Good faith belongs in religion, not in economics. It is no small wonder why many of the elites major in medieval economics(initiated by Pauperes commilitones Christi Templique Salomonici) at their ivory tower institutions.

Got to keep the masses satiated, and calm.
IF the system crashes again, there is going to blood in many people's eyes. The people who caused the 08 melt down got rescued and the very next year was a record year. It was and is a goat screw.

If somebody like the head of the Fed comes right out and claims financial strength and stability, with no likelihood of a crash coming any time soon, expect the worst. I don't know why they bother to lie to us....if it wasn't for their ability to create money simply by hitting a few computer keys, we would have crashed and burned long ago.

a reply to: FissionSurplus

a reply to: seasonal

Oh crap if Yellen is saying it's all good and they can weather a financial storm then we are all screwed. Every time the government starts thinking they got the bull by the horns everything goes to hell.

originally posted by: cenpuppie
She's stupid or in on it. Either way, if I was an investor (the market has turned me off, better of stuffing it in my mattress or buying gold) I'd be on edge.

Dang, FissionSurplus beat me to it but it bears repeating.

If somebody like the head of the Fed comes right out and claims financial strength and stability, with no likelihood of a crash coming any time soon, expect the worst.

With that said, smart money is out of the markets.

Have you looked at the markets. If all the smart money is out then there must not be much smart money to start with.