Volcker: Fed will 'fall short' | Forex Factory

  • Volcker: Fed will 'fall short'

    From cnn.com

    The Federal Reserve has been asked to "do too much" to heal the U.S. economy and "will inevitably fall short," former Fed Chairman Paul Volcker cautioned Wednesday. Speaking before the Economic Club of New York, Volcker said the Fed's independence and credibility are at stake, as the central bank engages in unprecedented stimulus efforts. The Fed is being asked to "accommodate misguided fiscal policies" and "deal with structural imbalances" while simultaneously balancing low inflation with stronger economic growth, he said. It's just too much, Volcker said, urging the Fed to focus on keeping prices stable instead. ... (full story)

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Ill-b-back
May 29, 2013 6:21pm
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If the Fed had done a better job at monitoring the impending housing market Tsunami which so many could foresee, if corrupt Rating agencies were held more accountable for their "opinions" and investment regulators did anything that resembled their job description, I doubt we would be in this mess.

Rather than allowing the masses to prosper, the above "oversights" if you really insist on calling it that, just ensure the elite can grow their obscene wealth further at the ultimate expense of others.
Reply
Ill-b-back
May 29, 2013 6:59pm
Permalink
Quoting Spreadbetter
I agree and disagree, our monetary system and prosperity model requires the continual creation of money (being brought into existence as debt) in order to 'grow'. Our ancient forefathers had the wisdom to realise that after a period of time a debt jubilee had to be enacted otherwise the system would collapse. We're at that point in time but tptb will never allow the little people off their debt so we're stuck in this vortex of stagnation. The Fed, ECB, BoE etc know they haven't got a solution to navigate us through this situation. The brightest...
Yes, debt Jubilees are a long ancient thing of the past.
My main point was that it (seems to me) everything and I mean almost everything was done to ensure this crisis occured and got worse.
Everything from Paulsons rediculous BS on continual growth, Bernanke ignoring all the warning signs (even from mainstream media), Relaxing investment leverage restrictions whilst simultaneously reducing the regulatory dept employment status to 1 man.
Mortgage investment held by the unemployed sold with a AAA rating and not stipulating the conditional use of Bailout money for the balance sheet only thus opening the way for the outrageous payment of ill structured bonus programs at tax payers expense.
What was wrong with the model before central banking and Govt relinquishing it's direct control over money supply?
Reply
Ill-b-back
May 29, 2013 7:07pm
Permalink
Quoting Spreadbetter
The brightest guys in the room and all they can create as solutions is zirp and QE to infinity. It'd be funny if it wasn't so terminal.
And it is this very divergence of intelligence and action leading up to and throughout the crisis that is highly suspicious to me, particularly when we realise who benefits and who pays...
Reply
Ill-b-back
May 30, 2013 8:19am
Permalink
Quoting Spreadbetter
So good they named a rule after him which IMHO will be tossed aside over the next couple of years, or perhaps sooner if this period of irrational exuberance lasts.

http://en.m.wikipedia.org/wiki/Volcker_Rule
Wow, You're a wealth of information aren't you brother .

I might just have to open another FF account so I can give you another vouch

he, he...
Reply
holmes
May 29, 2013 3:46pm
Permalink
It's not blaming others, monetary policy is not "all in one" but just a factor for growth and too much trust will weigh on all USA, and the cost will weigh on all nation. I am a trader and follow the market but if TO judge QEs I am certain that it is far too much.
Reply
Ill-b-back
May 29, 2013 9:00pm
Permalink
Volcker seems a good voice of reason in the article.
Reply
Spreadbetter
May 29, 2013 6:32pm
Permalink
I agree and disagree, our monetary system and prosperity model requires the continual creation of money (being brought into existence as debt) in order to 'grow'. Our ancient forefathers had the wisdom to realise that after a period of time a debt jubilee had to be enacted otherwise the system would collapse. We're at that point in time but tptb will never allow the little people off their debt so we're stuck in this vortex of stagnation. The Fed, ECB, BoE etc know they haven't got a solution to navigate us through this situation. The brightest guys in the room and all they can create as solutions is zirp and QE to infinity. It'd be funny if it wasn't so terminal.

Quoting Ill-b-back
If the Fed had done a better job at monitoring the impending housing market Tsunami which so many could foresee, if corrupt Rating agencies were held more accountable for their "opinions" and investment regulators did anything that resembled their job description, I doubt we would be in this mess.

Rather than allowing the masses to prosper, the above "oversights" if you really insist on calling it that, just ensure the elite can grow their obscene wealth further at the ultimate expense of others.
Reply
Spreadbetter
May 30, 2013 3:57am
Permalink
So good they named a rule after him which IMHO will be tossed aside over the next couple of years, or perhaps sooner if this period of irrational exuberance lasts.

http://en.m.wikipedia.org/wiki/Volcker_Rule



Quoting Ill-b-back
Volcker seems a good voice of reason in the article.
Reply
EricB
May 29, 2013 3:03pm
Permalink
Yes lets start blaming others for any future failures that are lurking.
Reply
Trader#F2AE
May 29, 2013 3:41pm
Permalink
So this guy caused the recession in the 1980s by rising interest rates and the current Fed leader is prolonging the current recession by keeping interest rates to low plus QE 1,2,3 and buying $85 billion in mortgage backed securities and Treasuries each month.

Anyone have any ideas what we should do with The Fed?
Reply
Trader#7B2B
May 29, 2013 5:34pm
Permalink
Quoting Guest
So this guy caused the recession in the 1980s by rising interest rates and the current Fed leader is prolonging the current recession by keeping interest rates to low plus QE 1,2,3 and buying $85 billion in mortgage backed securities and Treasuries each month.

Anyone have any ideas what we should do with The Fed?
Quoting Guest
So this guy caused the recession in the 1980s by rising interest rates and the current Fed leader is prolonging the current recession by keeping interest rates to low plus QE 1,2,3 and buying $85 billion in mortgage backed securities and Treasuries each month.

Anyone have any ideas what we should do with The Fed?

Just shut the Fed down. The US government has to stop borrowing its own currency and pay interest on it. Bring back the gold standard and stop creating money from thin air.
Reply
jaygee
May 29, 2013 6:54pm
Permalink
Business is picking up.
Reply

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