Sunday, November 30, 2008

Paul Volcker - Hammer Bearer

A very good article on Paul Volcker. As I have said before on this blog, I consider him a true American hero. This article brings out how he was willing to be hated to accomplish the better good for America. Very few people in history can do that. Contrast that with Alan Greenspan who only wanted to be loved and coddled.

This article tries to infer that Paul Volcker will be able to play the same role again. I am doubtful. Remember as Fed Chairmen he was politically isolated. That will not be case in hos new position as head of the New Economic Recovery Advisory Board. Warren Buffett has already been called an idiot after a month of the stock market not immediately rebounding after his NYT editorial. You think Paul Volcker will be given any more respect if what he recommends doesn't work within 4 weeks? I doubt it.

Volcker’s decisions were not easy ones. His actions touched off the worst recession since the Great Depression. There were unprecedented protests against the central bank. Fed officials were picketed and received two-by-fours in the mail with notes from workers in the hard-hit housing sector, saying “I can’t do anything with these, so you can keep them,” Reinhardt said. Volcker also had to withstand criticisms from politicians on Capitol Hill and in the White House under both Democrat Jimmy Carter and Republican Ronald Reagan.

Through it all, Volcker was tough and resolute.

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