Yellen warns of another potential financial crisis: ‘Gigantic holes in the system’
- “I think things have improved, but then I think there are gigantic holes in the system,” Yellen says.
- The former Fed chair cites leverage loans as an area of concern and says there remains an agenda of unfinished regulation.
- She also says rates will remain lower than they have been in past decades. Read more @ https://www.cnbc.com/2018/12/11/yellen-warns-of-another-potential-financial-crisis.html
WHAT IS THE PSEI TECHNICAL CHARTS SAYING?
“I think things have improved, but then I think there are gigantic holes in the system,” Yellen said Monday night in a discussion moderated by New York Times columnist Paul Krugman at CUNY. “The tools that are available to deal with emerging problems are not great in the United States.”
Yellen cited leverage loans as an area of concern, something also mentioned by the current Fed leadership. She said regulators can only address such problems at individual banks not throughout the financial system. The former fed chair, now a scholar at the Brookings Institution, said there remains an agenda of unfinished regulation. “I’m not sure we’re working on those things 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.”
Be cautious as the market prepares for a freefall…..
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