In 48 Hrs. Eddie Murphy deadpanned, "There's a new sheriff in town."
Time to say it again. Mr. Volcker is back.
"Paul has long been skeptical about financial engineering, which is another way of saying concocting schemes on Wall Street that nobody can understand," economist Blinder said. "He has some old-fashioned ideas that banks should apply some common sense to loaning money -- like making sure borrowers can repay."
The result of such problems was that the Federal Reserve, the linchpin of U.S. economic power, was forced to "take actions to the very edge of its lawful and implied powers" that violated "time-honored central bank practices," Volcker told the Economic Club of New York.
"The only reason I sleep at night," said a longtime friend and business partner of Volcker's, speaking on background, "is that Paul Volcker will have the president's ear."
Comments