I consider Paul Volcker one of America's greatest hero. I would put him at the same table as George Washington and Abraham Lincoln. Special people do what they need to do even if they know they will be hated. That is what Paul Volcker did in the 70s even though he had death threats and was essentially fired from the Fed. Now he is considered one of the greatest Fed Chairmans. He was in London talking not sounding so rosy. Thanks goes to Pete.
"What this crisis reveals is a broken financial system like no other in my lifetime," he told a conference at Lombard Street Research in London.
"Normal monetary policy is not able to get money flowing. The trouble is that, even with all this [government] protection, the market is not moving again. The only other time we have seen the US economy drop as suddenly as this was when the Carter administration imposed credit controls, which was artificial."
He advised Mr Obama to tread a fine line, embarking on bold action with a "compelling economic logic" rather than scattering fiscal stimulus or resorting to a wholesale bail-out of Detroit. "He can't just throw money at the auto industry."