Fed Vice Chair Yellen on How It Was Everyone But the Fed's Fault
Someone please get this woman a stool... or a muzzle.
Now I find this hard to believe. First, I'm told Janet Yellen is a well-educated, intelligent woman. I have yet to see evidence of this but apparently that is the consensus and is somehow reflected in her resume, much of which is composed of service to the Federal Reserve System. Second, being such a well-educated, intelligent woman, she should really know better than to say this sort of stuff out loud, in front of professionals, in a foreign country on the heels of the greatest global financial crisis since, well, ever. Third, surely she knows it was mostly our fault. Right?
Check out what she actually said at the Banque de France International Symposium in Paris last week:
In the case of the recent global financial crisis and recession, I would apportion responsibility to inadequacies in both the monetary and financial systems. With respect to the international monetary system, the basic story is now quite familiar: Strong capital outflows from countries with chronic current account surpluses--in part reflecting heavily managed exchange rates, reserve accumulation, and other shortcomings in the operation of the international monetary system--put downward pressure on real interest rates, in turn boosting asset prices particularly for housing) and enhancing the availability of credit. These developments contributed significantly to the buildup of financial imbalances, but they were not, on their own, sufficient to have engendered the massive financial crisis we experienced.
OMG, Janet, seriously. Shhhh, keep it down, you're making us look bad.
See, Bernanke just gave a different version of this exact same speech not a month ago, and Janet is, predictably, serving as a totally subservient bottom bitch to ZB, parroting his comments as if somehow that's going to force people who know better to believe them.
It was transparently sad then and is even more so now.