With the presidency in the hands of a great phony who thinks that “…this debt ceiling — I just want to remind people in case you haven’t been keeping up — raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy” and Senate on similar track, it is the turn of Federal Reserve Bank to adopt a similar outlook.
Now that Lawrence Summers’ nomination has been derailed by a small number of Democrat, who thought he was too laissez-faire during the 90s and because of his Harvard speech that commented on lack of women in sciences, Janet Yellen is the one most likely to be nominated. What does this liberal, who was a professor at Univ of California, Berkeley think of the future course of Fed policy? This in her own words.
“Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not,” she said.
Thanks for making that clear Janet. Now please tell us about the keen insights that you will bring to this job. Yellen shared the following with the Financial Crisis Inquiry Commission in 2010, regarding the 2008 financial crisis.
“For my own part,” Ms. Yellen said, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.” Her startled interviewers noted that almost none of the officials who testified had offered a similar acknowledgment of an almost universal failure.
Well, at least she is honest about it. US is in great hands indeed.