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Ares
24th September 2010, 07:58 AM
The financial system is still at risk even after an overhaul of financial regulation in the United States and new capital requirements for international banks, says Paul A. Volcker, former chairman of the Federal Reserve and an adviser to President Obama.

In a bleak assessment delivered Thursday at the Federal Reserve Bank of Chicago’s 13th annual International Banking Conference, Mr. Volcker said:

The reason we are all here is that the financial system is broken. We can use that term in late 2008, and I think it’s fair to still use the term, unfortunately. We know that parts of it are absolutely broken, like the mortgage market which only happens to be the most important part of our capital markets.

Mr. Volcker supports the financial overhaul and the enhanced power of the Fed to monitor systemic risk. But he also said that there was need for structural changes in markets and regulation, arguing that there were inherent limits to the abilities of regulators:

“Relying on judgment all the time makes for a very heavy burden whether you are regulating an individual institution or whether you are regulating the whole market,” he said. That decision, he said was “subject to all sorts of political and institutional blockages.”

“Even if you sense something going wrong, doing something about it is extremely difficult.”

In his speech, Mr. Volcker covered a lot of ground. Barry Ritholtz has a summary:

Volcker unloaded on banks and CEOs; he trashed regulators and the inept business schools. He opened fire on the Fed, bombed money-market funds.

Mr. Volcker was also pessimistic about a recovery, saying, “It’s been so difficult to get out of this recession because of the disequilibrium in the real economy.”

http://dealbook.blogs.nytimes.com/2010/09/24/volcker-financial-system-is-broken/?dlbk&emc=dlbk

iOWNme
24th September 2010, 08:16 AM
Volcker unloaded on banks and CEOs; he trashed regulators and the inept business schools. He opened fire on the Fed, bombed money-market funds.

Mr. Volcker was also pessimistic about a recovery, saying, “It’s been so difficult to get out of this recession because of the disequilibrium in the real economy.”



MARXIST. (If he could just even out the economic classes, this would fix everything)

Does anyone really buy this crap? They are laughing in our faces. Volker is a Satanic underling who graduated from Princton and Harvard in economics. He likely couldnt explain to me the definition of Capital. He has been inculcated with banking tricks and fraudulent schemes which he labels Democratic and Free Market.

NOTHING could be further from the truth.

He made sure the Gold was lifted in the 70's, He has worked for the Federal Reserve since the 50's. The same guy who raised the Federal Funds Rate to 20% in the early 80's. Also worked for Chase and ran the US Treasury in the early 60's. This guy is so wrapped up in fiat paper, he should be called the Mummy.

He has never produced as much as a ham sandwich. He couldnt use his hands and labor to achieve ANYTHING. And yet we are to listen to him on our to fix a NON PRODUCING economy?

Cebu_4_2
24th September 2010, 09:53 AM
I remember Volcker repeating on an interview that the Fed is a Killer!

Of course all the videos have been pulled.

Ponce
24th September 2010, 10:05 AM
Most of the time something broken can be fixed....the US economy is beyond "broken".....is kaput, finish, finito, terminado, gone.