Yellen: We Didn't See Financial Crisis Coming

The transcript discusses the unexpected nature of the financial crisis, highlighting the failure to foresee the systemic risk posed by the house price bubble, shadow banking, and derivatives. It acknowledges the need for improved financial oversight and regulation to prevent future crises.

What was one of the missed opportunities mentioned by the speaker in relation to the financial crisis?

• Reducing interest rates

• Increasing public awareness

• Saving Lehman Brothers

• Implementing stricter banking regulations

According to the speaker, who failed to foresee the financial crisis?

• Only the private sector

• Only the government

• Regulators, economists, and the private sector

• Only the economists

What was a significant factor in the housing market that contributed to the financial crisis?

• Overvaluation or bubble in house prices

• High unemployment rates

• Increased foreign investments

• Low consumer spending

What sector's growing leverage was highlighted as a risk in the financial crisis?

• Shadow banking sector

• Technology sector

• Public sector

• Retail banking sector

What financial instruments were mentioned as being underestimated in their role during the crisis?

• Mutual funds

• Bonds

• Stocks

• Derivatives