Tuesday, May 4, 2010

Things are Terrible, Do Nothing

Not much new from former Federal Reserve chairman and current administration advisor (chairman of President Obama’s Economic Advisory Recovery Board) Paul Volcker.
“Not much of that can be done this year, or even next,” Volcker said. “It is a challenge not just for this Congress and this administration, but for years ahead.”
Smart ass that I am, if there is nothing to be done, let us embark on the road to recovery and cut government spending on economic advisors, starting with chairman Volker. It might be worth the firing of a gaggle of messengers. We need to get rid of the “nothing to be done” crowd because something has to be done before tens of millions of people melt into air.

He said in his speech at Washington University in St. Louis that America needs to shift its reliance from consumer and government spending to a greater emphasis on savings, exports and industrial investments. Good advice. The decades of policy that assisted in moving industry and jobs overseas has resulted in an economy that no longer operates unless the government intervenes.
“What we need is more saving, more industrial investment, and a stronger trade position,” Volcker said in his lecture at Washington University. “Our expansive and expensive program of entitlements simply must be brought under control. Our mortgage market must be rebuilt from the ground up.”
I would hate to see him go. He has actually given better advice to the administration than the current Fed chairman. Chopping off the metaphoric head of someone who says:
“Not much of that can be done this year, or even next,” Volcker said,

is exactly the kind of message that needs to echo through the pipes of the Internet.

I suspect he will not file for unemployment benefits if he is let go.

BTW: the story ended with this cheery note:
The jobless rate has not increased since October, when it reached a 26-year high of 10.1 percent.
That warms the cockles of this heart.

2 comments:

  1. Did you happen to see this article? This guy seems to be really thinking.
    http://money.cnn.com/2010/04/19/magazines/moneymag/joseph_stiglitz_economy.moneymag/index.htm?postversion=2010041923

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  2. I did, thanks to http://joblessunite.yolasite.com/. Did a post about it, too.

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