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She isn't wrong so far, if "financial crisis" means a massive recession. She also indicates what kind of financial crisis she means: > "Yellen said the archit

by smt88 4y ago

She isn't wrong so far, if "financial crisis" means a massive recession. She also indicates what kind of financial crisis she means: > "Yellen said the architecture of the financial system has changed in ways that has made it safer for all parties involved, citing a number of factors including the Fed’s annual stress testing practices that simulate a crisis-like situation including significant swings in the stock market, a decline in home prices and a decline in the unemployment rate."

AnimalMuppet 4y ago
In 2008, I was literally one day away from withdrawing every dime I owned from the bank, because I couldn't be sure the bank would survive. A 15% drop in the Dow is nothing like a real crisis.
- mc4ndr3 4y ago
  Your deposit is insured. But sure, participate in panic.
  - unmole 4y ago
    Let's say I need to withdraw my savings for whatever reason next week but my bank goes bust tomorrow. How long will it take before the FDIC insurance pays out?
fnordpiglet 4y ago
Financial crisis means a crisis in the financial system, which causes systemic capital risks and lack of faith in institutions. This leads to large scale defaults and inefficient allocation of capital, leading to a recession. But because banks are weak or broken it’s hard to leverage into a better economy so it sticks for a long time.