Later, as president of the San Francisco Fed, Ms. Yellen sounded early warnings about the danger of a U.S. housing bust. "I still feel the presence of a 600-pound gorilla in the room, and that is the housing sector," she said at a June 2007 policy meeting, according to Fed transcripts. "The risk for further significant deterioration in the housing market, with house prices falling and mortgage delinquencies rising further, causes me appreciable angst."
Three months later, she foresaw a dangerous economic cascade.
"A big worry is that a significant drop in house prices might occur in the context of job losses, and this could lead to a vicious spiral of foreclosures, further weakness in housing markets, and further reductions in consumer spending," she said, at a September 2007 meeting. "The potential effects of the developing credit crunch could be substantial."
Contrast that to what Bozo the Bernanke was saying at the time:
Good to know Hilsenrath goes both way. It's professionally very wise.
"Three months later, she foresaw a dangerous economic cascade"
That is akin to saying that the man pulling his dick and idling around on the beach in Thailand "foresaw" the gigantic wave rolling in from the tsunami just before it shredded him to pieces. Dumbass bloggers on the interwebz were talking about what was going to happen in detail THREE YEARS before it rolled out, but Yellen is some sort of Oracle of Delphi? Expert economist, pffffffttttt, my hairy ass.
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