Justin’s note: We won’t have another financial crisis “in our lifetimes.”
It’s a crazy idea. After all, it feels like the U.S. is long overdue for a major crisis. But that’s what Janet Yellen thinks. The Fed chair said two weeks ago:
WOULD I SAY THERE WILL NEVER, EVER BE ANOTHER FINANCIAL CRISIS? […] 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.
I couldn’t believe my eyes when I read this. So, I called up Doug Casey to get his take. Maybe he could make sense of this.
Below is a transcript of our conversation…
Justin: Doug, I know you disagree with Yellen. But I’m wondering why she would even say this? Has she lost her mind?
Doug: Listening to the silly woman say that made me think we’re truly living in Bizarro World. It’s identical in tone to what stock junkies said in 1999 just before the tech bubble burst. She’s going to go down in history as the modern equivalent of Irving Fisher, who said “we’ve reached a permanent plateau of prosperity,” in 1929, just before the Great Depression started.
I don’t care that some university gave her a Ph.D., and some politicians made her Fed Chair, possibly the second most powerful person in the world. She’s ignorant of economics, ignorant of history, and clearly has no judgment about what she says for the record.
Why would she say such a thing? I guess because since she really believes throwing trillions of dollars at the banking system will create prosperity. It started with the $750 billion bailout at the beginning of the last crisis. They’ve since thrown another $4 trillion at the financial system.
All of that money has flowed into the banking…