Senator Elizabeth Warren’s Q&A at the Senate Banking Committee’s hearing to consider the nomination of Janet Yellen to be Chairman of the Board of Governors of the Federal Reserve System.Here is a direct video link.
Warren points out that if the Fed had done its job of regulating and overseeing banking risk properly in the first place we would never have needed all their extraordinary bailout efforts since. While Yellen concedes this is true she says they have learned from their failures.
The trouble is there is no evidence to support Yellen’s assurances. Yesterday she testified yet again that she sees no evidence of any excess speculation or bubbles building in the financial system today. The Yellen Fed will therefore be just as useless as the Greenspan and Bernanke-led Feds were in mitigating any risks for the real world.
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