Ex-Federal Reserve chief Paul Volcker says U.S. now in recession

October 14, 2008 by · 1 Comment
Filed under: Opinion 

Ahh, my hero ex-chairman Mr. Volcker. If only others would have the discipline you displayed to contain inflation.  I think if you talked to the average business person that you would agree we are in recession.   In the article he talks about some of the same issues that have been discussed here daily. We are looking too short-term in our goals for this financial crisis.

Many times the short-term gains you have, may not be worth the lasting long-term effects you cast on an economy. At some point we will have to deal with this debt, trade imbalance, credit creation/inflation and destruction of the middle class in the U.S. and not amount of credit will fix those problems. We have a system and culture that is not sustainable and will fall apart at some point in the future. It is good to take some punches on lip so you know what it feels like. The goal of life, atleast in my book is not to achieve ultimate convenience but to affect change and leaving life better than it was left to me.

Press Release:

Former Federal Reserve Chairman Paul Volcker said on Tuesday the U.S. housing sector faced more losses and the economy was in recession even as authorities moved to stabilize the financial system.

Volcker said the priority for U.S. authorities in the credit crisis was to stabilize the financial system even though that meant heavy government intrusion.

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