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YELLEN: We didn't see the financial crisis coming (SPY, SPX, DJI, IXIC)

Federal Reserve chair Janet Yellen says the Fed did not see the financial crisis coming. "We saw trees, and the house price bubble was a tree," Yellen said Friday at Harvard University's Radcliffe Day, where she received the Radcliffe Medal. She said the explosion in leverage was a clue, but the Fed did not see it evolving into a full-blown crisis. Yellen said former Fed chair Ben Bernanke did a "magnificent" job in steering policy to heal the economy after the Great Recession.
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