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**metalman** · April 13, 2009, 03:37 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by D-Mack View Post

Volcker Assumes Smaller-Than-Expected Role With Obama

By MONICA LANGLEY

WASHINGTON -- As an early supporter of Barack Obama, Paul Volcker gave the young presidential candidate gravitas and advice. He frequently sat by Mr. Obama's side at key economic events, and started carrying a cellphone for the first time, just to be able to brainstorm with the candidate from the campaign trail.

In the Obama White House, the role of the 81-year-old former chairman of the Federal Reserve has been more limited.

The one-time central banker has been put in charge of a presidential advisory board that hasn't yet had a formal meeting. It has been nearly a month since he has seen Mr. Obama. Mr. Volcker hasn't been a main player in key decisions handling the global financial crisis.

Former Federal Reserve Chairman Paul Volcker says he has no complaints about his new role.

Treasury Secretary Timothy Geithner unveiled the administration's plans for handling troubled financial institutions and the housing crisis without seeking input from Mr. Volcker, associates say. "Paul was surprised" at the failure to consult him, particularly on issues of financial rescue after his dominant role in resolving financial crises in the 1980s, says one person who has spoken to Mr. Volcker recently.

...

http://online.wsj.com/article/SB1239...s_topics_obama

call it reason #243 why we're f*cked.

**Mega** · April 13, 2009, 03:40 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

"They" are not ready to give up World power.

"They" are still full of "Belief Bulshit".

China will have to force the issue.
Mike

**Starving Steve** · April 13, 2009, 04:54 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

The pro-inflation economic policies of the Obama Administration and the pro-solar energy policies of the Obama Administration are troubling. Had I known that Obama would turn-out to be a President Hollywood instead of a modern-day FDR, I would have voted for the Republican--- because at least by now with the Repukes, the energy problem would be on its way to being solved by drilling and maybe Paul Volker would have been embraced too.

If the inflation comes back strong this summer and if the world stock market go-dumpies again, the Obama Administration may be in deep crisis. That would be the make-or-break test for the Obama Administration: to rid itself of the eco-frauds shaping energy policy and also to rid itself of the Keynsians shaping economic policy.

Just looking at grocery prices climb this month in Canada, my guess is that inflation is going to be the shocker this summer. And zero interest rates at the banks just don't cut it with prices inflating now. The policies just don't reckon at all.

**nero3** · April 13, 2009, 05:03 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

I have watched Volcker. He is like an elephant in a glass house. The current administration, especially Summers, have no intension of reform as I see it. Volcker gave Obama his brand name, but I think Obama got more than he had bargained for. All they want is to try and get the economy going, not to reinvent the wheel.

**GRG55** · April 13, 2009, 05:06 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by Starving Steve View Post

...Just looking at grocery prices climb this month in Canada, my guess is that inflation is going to be the shocker this summer. And zero interest rates at the banks just don't cut it with prices inflating now. The policies just don't reckon at all.

Starving Steve on December 30, 2008...

Originally posted by Starving Steve View Post

Just observing gasoline down again to-day on Vancouver Island and to prices not seen since the decade of the 1990s. This is always the hold-out for high gas prices, so when gas drops here, that is big news. (Things must be just horrid in the oil patch.)

And thinking about this, I see that house prices have fallen 18% in one year in the U.S. according to the Case-Shiller index. Home prices are falling in the so-called strong markets: Nevada, California, and Arizona. San Francisco--- heretofore, always the hold-out for the highest of high real estate prices--- is hardest hit.

So, I would not poo-poo deflation. It is here now, and it is everywhere.

My friend just bought a new Nissan, with a six-speed manual transmission. New with warantee, out of the box, and here on Vancouver Island: $14,000 Cdn. plus tax. (That is not an Alberta price, but that is right here in B.C. and with all of the hidden costs of doing business here on Vancouver Island.)

Even the ferry fees have dropt, at least until the end of January.

Everywhere I look is pure deflation. The case for hyper-inflation is weak and getting weaker by the week. No-one has money to support these prices, and darn few people have incomes to support any spending habits.

That was one pretty short deflation Steve...:eek:

**nero3** · April 13, 2009, 05:57 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Krugmans comment to it is funny.

http://krugman.blogs.nytimes.com/200...o-big-to-fail/

I like this in the other article he link's to. He have an excellent way of describing our bubble era: . Post-moderation recessions haven’t been deliberately engineered by the Fed, they just happen when credit bubbles or other things get out of hand.

**Munger** · April 13, 2009, 06:02 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by nero3 View Post

I have watched Volcker. He is like an elephant in a glass house. The current administration, especially Summers, have no intension of reform as I see it. Volcker gave Obama his brand name, but I think Obama got more than he had bargained for. All they want is to try and get the economy going, not to reinvent the wheel.

We finally have a point of agreement.

**metalman** · April 13, 2009, 06:11 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by nero3 View Post

I have watched Volcker. He is like an elephant in a glass house. The current administration, especially Summers, have no intension of reform as I see it. Volcker gave Obama his brand name, but I think Obama got more than he had bargained for. All they want is to try and get the economy going, not to reinvent the wheel.

you got it half right. obama used volcker to get elected by giving obama cred. then he hired fire econ insiders summers and timmy to get the fire economy going again without stepping on the toes of the money that got obama elected. volcker fell for it. what must volcker think of obama now?

**metalman** · April 13, 2009, 06:15 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by nero3 View Post

Krugmans comment to it is funny.

http://krugman.blogs.nytimes.com/200...o-big-to-fail/

I like this in the other article he link's to. He have an excellent way of describing our bubble era: . Post-moderation recessions haven�t been deliberately engineered by the Fed, they just happen when credit bubbles or other things get out of hand.

who bothers to read krugman? never seen anyone else quote the silly prof. here. where was he when the bubbles were raging? sucking up to his nobel prize sponsors.

**jtabeb** · April 13, 2009, 07:34 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by metalman View Post

who bothers to read krugman? never seen anyone else quote the silly prof. here. where was he when the bubbles were raging? sucking up to his nobel prize sponsors.

Don't forget kissing the ass of his boss, Bernanke.

**GRG55** · April 13, 2009, 09:05 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Originally posted by metalman View Post

you got it half right. obama used volcker to get elected by giving obama cred. then he hired fire econ insiders summers and timmy to get the fire economy going again without stepping on the toes of the money that got obama elected. volcker fell for it. what must volcker think of obama now?

Let's remember Volcker pitched Geithner's nomination to the committee at the opening of his Senate confirmation hearings. He listed most of Geithner's qualifications, but unfortunately overlooked his talents with efficient tax planning...:rolleyes:

**occdude** · April 13, 2009, 09:45 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Well I guess they used "Big Paul Volcker" for window dressing. Mr. Summers has it under control with Mr. Geithner. Volcker would only remind them of the obvious, that they have no money. Thats no fun, and unlikely to get you an invite to the spiked economic punch bowl. So ever so slowly, I think the big man is going to be led to pasture UNLESS they need a fall guy with a low life expectancy.

I like Volcker. Although politics binds his hands, you get the sense that he's tall enough to see above the BS.

**walenk** · April 13, 2009, 10:11 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

I'm biting my tongue.
This is a conjunct ripe with invidious, scurrllous, and jet black humor.
"Shocked, shocked." I just shut up now.

Almost.
"Ain't that America."

**vanvaley1** · April 13, 2009, 10:32 PM

Re: Volcker Assumes Smaller-Than-Expected Role With Obama

Interesting radio lecture by Steve Keen on http://www.prudentbear.com/ "The Global Crisis: How Bad Will it Get?" Nice, short, concise summary of the 'bubble history' that was understandable to this layman...well, he got into the deep end once where I couldn't swim ...and opines of the inadequate understanding and steps being taken to substantially ameliorate this mess.

The thing I wish he would have addressed was the issue of how do we get out of it. EJ does that but I'm beginning to think that that isn't enough if this thing is as bad as Keen lays out. So anybody know what Keen's solution to this mess is? Would like to do some 'mix and match' shopping.

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