Thursday, September 24th, former Fed Chairman Paul Volcker testified before the House Committee on Financial Services, discussing topics on Systemic Risk and Resolution Issues. (click for video, 19 minute mark) I have extreme regard for Mr. Volcker as one of the very few highly responsible financial advisers to the USA. Below is a pre-release of some of the topics Mr. Volcker covered. My only major disagreement with him is the that the Federal Reserve Bank should exist. A good dissection of Mr. Volckers statements can be found at Zero Hedge.
If America was to follow his advice immediately, this long, protracted recession/depression America is facing would be cut significantly shorter, but probably a little bit deeper. I am betting America is not yet ready to do the right thing. I hope I am wrong.
Mr. Volcker's opinions are always worth the read, unlike our current Federal Chairman. And it is a sad state of affairs that one of the few, regarded individuals is someone who is 75+ years old, where is the next generation?
A particular quote I liked:
The Federal Reserve Board should not become an academic seminar debating in its marble palace various approaches toward monetary policy without the leavening experience of direct contact with, and responsibility for, the world of finance and the institutions through which monetary policy is effected