Uh-oh. Chairman Yellen assured us today that she does not believe that there will be another financial crisis “in our lifetimes.”
You may recall another perfectly timed assurance by a high-powered economist:
The stability of the economy is greater than it has ever been in our history. We really are in remarkable shape. … The United States is at the peak of its performance in its history. There has never been a time in the United States when we have had the state of prosperity, its level and its spread, that we have had in the last ten or fifteen years. … It’s unprecedented. I certainly do [give credit to Alan Greenspan for that]. I think monetary policy is primarily responsible for it (Milton Friedman, Charlie Rose Interview, December 26 2005).