Source: InternationalMan.com, by Jeff Thomas
Regarding the Great Depression… we did it. We’re very sorry… We won’t do it again.
– Ben Bernanke
Waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road—either too much inflation, financial instability, or both.
– Janet Yellen
In his speech above, future Federal Reserve Chairman Ben Bernanke acknowledged that, by raising interest rates, the Fed triggered the stock market crash of 1929, which heralded in the Great Depression.
Yet, in her speech above, Fed Chair Janet Yellen announced that “it makes sense” for the Fed to raise interest rates “a few times a year.” This is a concern, as economic conditions are similar to those in 1929, and a rise in interest rates may have the same effect as it did then.
So let’s back up a bit and have a look at what…
View original post 411 more words