Janet Yellen Warns Another Financial Crisis Could Be Brewing

[TomCADem]

Source: Fortune

Janet Yellen, former chairwoman of the Federal Reserve, is sounding a warning bell about another financial crisis in the making, saying the loss of authority by banking regulators and the move toward deregulation are worrisome.

Yellen pointed to leverage loans—those extended to businesses with weaker credit—as a primary area of concern, since regulators are currently powerless to address them at the top level. Instead, they can only focus on problems at individual banks.

“I think things have improved, but then I think there are gigantic holes in the system,” Yellen told a New York audience Monday night, as quoted by CNBC. “I’m not sure we’re working on [the leverage loan issue] in the way we should, and then there remain holes, and then there’s regulatory pushback. So I do worry that we could have another financial crisis.”

The warning is a significant course reversal for Yellen, who in 2016 said she wasn’t worried about a recession, and last year said she did not believe there would be another financial crisis in our lifetime because of financial reforms. A continued push for deregulation has made her rethink that.

Read more: http://fortune.com/2018/12/11/janet-yellen-warns-another-financial-crisis-could-be-brewing/

[Honeycombe8]

1. Yep. As soon as they deregulated AND passed an unpaid-for huge tax cut bill for the wealthy...

I said then, and still say, there's an ill wind a'comin'. It's called RECESSION.

We just went through the exact thing in the Bush administration. That's the recipe for recession: deregulation and a large unpaid-for tax cut bill for the wealthy. That's ASKING for a collapse of the economy, as the fraud and debt mounts.

Those strange mortgage investments that were full of fraudulent claims that was key to the collapse? They came back and are being sold a LOT as great investments. CBOs, CDOs, etc.

Get out your stopwatch. The clock is ticking.