Recently a number of prominent parties have stated that, in effect, the financial system is “stable” and “strong.” One such example is the comments made by Janet Yellen in the December 14, 2016 FOMC Press Conference (“Janet Yellen’s December 14, 2016 Press Conference.”)
Many attribute various financial regulations and reforms, enacted since the Financial Crisis, for this (purported) stability.
My beliefs on the subject of whether the overall financial system has strengthened – and whether it is now “strong” and/or “stable” – continue to be that discussed in a variety of past posts. These beliefs are perhaps best summarized in the August 7, 2014 post titled “Thoughts Concerning The Next Financial Crisis” as well as the March 18, 2014 post titled “Was A Depression Successfully Avoided?”
The Special Note summarizes my overall thoughts about our economic situation
SPX at 2258.07 as this post is written