Paul Volker Interview Part 6- Oct 9, 08

Paul Volker interviewed on financial crisis, part 6 of 6

In April 2005 he said:

"
Yet, under the placid surface, there are disturbing trends: huge imbalances, disequilibria, risks -- call them what you will. Altogether the circumstances seem to me as dangerous and intractable as any I can remember, and I can remember quite a lot. What really concerns me is that there seems to be so little willingness or capacity to do much about it....A vulnerable financial/banking system. We live in a global laissez faire financial system that is highly leveraged with debt financing, derivatives and fractional reserve banking. Hedge funds are not really hedged, but highly speculative, and another collapse along the lines of Long Term Capital Management could be disastrous."

Category:

News & Politics

Tags:

• paul
• volker
• financial
• crisis
• federal
• reserve
• obama

[TheIronTroll]

I sincerely hope that very few people turn to gold. That is the exact opposite of what we need right now.

[TodMcInerney]

I enjoyed that ... but definitly got impression that Volker was putting a brave face on, and didn't talk about all the inflation thats going to be coming down the pipe. Volker wrote most of nixon's speech in 71 re going of the gold standard, he favoured a return to the gold standard witin a few years, the speech was altered and here we are today with mases of irredeemable paper and excesses all over the place. Gold was an Anchor for the financial system ... Please protect yourself and buy gold.