Monday, July 14, 2014

Janet Yellen Gives Her Clearest Comments Ever About How She Missed The Crisis And How She Sees The World

The Business Insider quotes Janet Yellen:
I'm sorry that light bulbs didn't go off in my head a couple of years before they really did, but there was no question,' [Yellen] told me. 'I was hearing stuff that was scary. And I wouldn't have seen it in the data.' Her business contacts told her that people were trying to give them money to invest without asking questions about what they were going to do with it. The connection she failed to make, however, was between the housing bubble and a full-on economic disaster: 'I absolutely did not see it as something that could the financial system down.

The Keynesian religion will do that to you.