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Kudos to Paul Volker for telling it like it is

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October 01, 2009 – Comments (6) | RELATED TICKERS: VO , L , KR

This recent quote from Paul Volker is possibly the best quote that I have ever seen from anyone that is even remotely close to being involved in the government:

“I think it’s questionable of how rapidly the economy will expand after this recession, because there are a lot of basic adjustments that have to be made…. We can’t just pump up consumption and pump up housing again. Might pad us for a year or two, but it’s imbalance that got us in trouble in the first place. We’ve got to work toward producing more goods, selling more goods abroad, being more competitive abroad, maintaining a decent rate of savings, bringing budgetary–federal budgetary situation back into something that’s sustainable, and all those things, plus the financial market is wounded. There’s no doubt about that, and it won’t recover from those wounds, deep wounds for a while.” (When pressed, Volcker wouldn’t put an exact time frame on the recovery, but said it would take “several’ years.)”

I can't believe that Volker hasn't been given an even more prominent position by the current Administration.  No wait, I take that back...I do believe it.  Giving Volker actual responsibilities, such as Secretary of the Treasury or Head of the Federal Reserve makes too much sense in place of the inexperienced academics that currently hold those positions (I'm not sure that one can even call Geithner an academic...I'm not sure what he is).  He is a smart guy gets it, who has been there and done that and who actually has the stones to do what needs to be done rather than taking escaping on the Greenspan balloon ride. 

The recovery has started, but it will be much slower than the "V"-People believe.

Deej

6 Comments – Post Your Own

#1) On October 01, 2009 at 7:39 PM, portefeuille11 (98.73) wrote:

Paul Volcker: You Call This An Economic Recovery?

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#2) On October 01, 2009 at 8:08 PM, Tastylunch (29.20) wrote:

It annoys me to no end that one tof the very few guys who gets it who has the expertise and track record needed to actually accomplish meaningful change is completel shut down by the Obama adinistration as being too radical.

Infuriating!

Volcker is even a registered democrat for crying out loud! 

Is there no one in Washington who is not in Wall Street's back pocket?

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#3) On October 01, 2009 at 9:05 PM, starbucks4ever (97.18) wrote:

Volcker is the only chairman of the Fed that deserves any respect for his past performance. Too bad he has now been reduced to a figurehead - another Medvedev, so to speak :)

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#4) On October 01, 2009 at 9:48 PM, KamranatUCLA (29.06) wrote:

teej

I saw his testimony at 3 am on CSPAN. And yesterday he was on Charlie Rose but I only saw part of it.

This guy is reasonable, and I wrote a post after I saw his testimony.

But what puzzles me is where has he been until now and how come he was giving testimony and why was he on Charlie Rose out of a sudden.

Is he just coming forward to have a positive impact??

I think he does say as it is. When I saw that on SCPA I was like daaaaamn...he was basically was saying FDIC is out of money and that's why small banks were allowed to go bankrupt first, because FDIC could cover their depositors.

So now I really understand what "to big to fail" means. It means FDIC was just some BS governmental BS and now that shove comes to Push (orwhatever that saysing) FDIC is out of money.

I think we should print money, give it to FDIC and let the big banks fail...if you got more than 100K and you can't get it out of your bank soon enough..tough!

CIT that was a more important company to trade and in my opinion is more important than BofA or Citi went bankrupt...and these jokers are still in business.

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#5) On October 01, 2009 at 9:49 PM, KamranatUCLA (29.06) wrote:

* too big to fail

man my spelling sucks..i know

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#6) On October 02, 2009 at 6:25 AM, jesusfreakinco (28.82) wrote:

Amen to all posts.  and argggggghhhhhhh!

JFC

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