Video: Interview Of Former Fed Chairman Paul Volcker

Former Fed chairman Paul Volcker has a very calm and soothing tone in this interview. He exudes confidence in his delivery and is very believable, unlike some of the other politicians that have been speaking, trying to calm frazzled nerves.

Charlie Rose seems to be able to ask the right questions. Volcker suggests that this problem is not even close to the “Great Depression”, where unemployment exceeded 20%.   He does point out that this time around it’s more complicated than it was back in the 30’s.  In the 30’s there were not credit default swaps, CMO’s and derivatives.  He suggested that in the 30’s the crisis ended when banks were re-opened, after having been closed for a week or so.  As the banks were re-opened, people put their money back into the banking system.  Nothing had really changed economically or fundamentally from one week to the next, only that CONFIDENCE had come back.  I think that confidence is what will help us to repair the current system.

He makes a great point that the market is working it all out.  He believes that the government has the tools to make it all work, and in this case there are new opportunities.

He suggests that “opportunities” to work together to solve the crisis are bringing nations together to work on the problems.  He suggests that the opportunity is in front of us to build a solid lock tight financial system.  We’ll feel some pain, but in the long run, it will be a better system.  It’s a lengthy interview - 35min or so.  Well worth the time for his insight! Enjoy.

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