Volcker: Rebuild U.S. Banks From 'Ground Up'
Former Federal Reserve Chairman Paul Volcker and Nobel economics laureates Robert Mundell and Joseph Stiglitz participate in a Women's Economic Round Table discussion in New York about the global financial crisis, the outlook for the U.S. economy and the government's financial-rescue plan:
click for video
Teresa Tritch, a member of the board of editors of the New York Times, moderates. Heidi Hartman, president of the Institute for Women's policy research, and Marina Whitman, a professor at the University of Michigan, also speak.
00:00:00 Tritch introduces roundtable participants.
00:01:28 Mundell: current crisis vs. Great Depression
00:05:33 Mundell: need to reduce corporate taxes
00:08:05 Volcker: financial crisis "without precedent"
00:14:48 Volcker: rebuild U.S. banks from "ground up"
00:19:56 Stiglitz: "long, deep downturn" in economy
00:21:34 Stiglitz: government response, bank rescue
00:33:30 Questions: Volcker, Mundell on world currency
00:44:29 Participants on fiscal stimulus, U.S. deficit
00:57:55 Stiglitz on government regulation, innovation
01:00:46 Volcker, Mundell, Stiglitz on global currency
01:07:18 Participants make summary remarks.
Running time 01:19:59
>
Source:
Volcker Says U.S. in Midst of `Unprecedented' Financial Crisis
Anthony Massucci
Bloomberg, Oct. 22 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCGOAM_a6kTc
Friday, October 24, 2008 | 12:00 AM | Permalink
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I suppose I should be more impressed by Stiglitz than I am?
Posted by: Max | Oct 24, 2008 12:28:09 AM
Somewhat off subject, but Hank Paulson on Charlie Rose did not instill a lot of confidence - he sounded like a run-of-the-mill CEO on a quarterly earnings conference call.
Posted by: Winston Munn | Oct 24, 2008 12:43:42 AM
Tomorrow/today is going to be a doozy given what the Nikkei is doing.
"Rebuild U.S. Banks From 'Ground Up'," does not seem to be optional.
Posted by: Blackhalo | Oct 24, 2008 1:00:01 AM
Well,
Not much to say here. Good luck to all......
Econ 101
Posted by: Economics 101 | Oct 24, 2008 2:02:15 AM
Barry, what is going on with the U.S. Dow Jones futures right now? Down 345 points at 11:30PM PST? Is this AIG again?
Posted by: Mateo | Oct 24, 2008 2:28:14 AM
This can't go on forever.
Someday, it'll have to be over.
Posted by: engineer al | Oct 24, 2008 2:36:00 AM
@Mateo
I have been watching that very closely tonight as well.
One theory in my mind is that with the Nikkei tanking, that those stocks are a better value than the currently "expensive" U.S. DJ stocks and money will move.
The other is that there is capitulation in regard to the fact the the U.S. is in VERY bad shape and has no hope of any kind of immediate recovery, so it is better to invest in regions that would be first to rebound.
In any case I am glad that I did not pull the trigger on my puts yesterday.
Posted by: Blackhalo | Oct 24, 2008 2:45:17 AM
Lovely call! A money machine blog. Check it, unless you want to pay via stock market for the cost of not checking.
".... The call is at follows:
2:22PM: with sp500 at 859, Dow at 8244, and Nasdaq 100 at 1178, according to our analysis, the market is at the bottom area.
To your profits!"
http://www.marketwarnings.com/2008/10/dow-sp500-bottom-of-stock-market.html
Posted by: jim | Oct 24, 2008 2:49:36 AM
Volcker: Rebuild U.S. Banks From 'Ground Up'
Rebuilding the markets from the ground up may be the next task on the agenda. (DOW down 404 points at 3:27 a.m.)
It appears that asking the world to double its holding of U.S. debt is being met with less than enthusiastic support.
Posted by: Winston Munn | Oct 24, 2008 3:33:10 AM
Two words best describe the fate of our financial future: Unintended Consequences
Posted by: Winston Munn | Oct 24, 2008 3:43:59 AM
Winnie,
with this:
Posted by: Winston Munn | Oct 24, 2008 3:43:59 AM
we should be so lucky..
Posted by: Mark E Hoffer | Oct 24, 2008 3:48:39 AM
Well, it looks like Greenspan may get his tsunami today. The PPT is going have to spend big time on calls to avoid a 1000 point crash today. They certainly made the old college try yesterday.
I think it's a great time to exit. The churn is going to be ridiculous for a couple of weeks. Last January I compared this market to log rolling in white water. It looks more like log rolling off Niagara Falls now. But don't worry, Buffet's pal, Micro Gates beat estimates so everything is going to (eventually) in 5, 10 or 20 years be just fine.
Posted by: AGG | Oct 24, 2008 3:59:30 AM
The futures? I imagine a bunch of traders in Japan looking at their RSS feeds come through yesterday saw Barry's "Greenie: I Suck" post roll through, looked at one another, murmured "ahh..soo", nodded heads and immediately sent the N225 into a kamikaze dive.
Posted by: MarkM | Oct 24, 2008 5:12:14 AM
Hello Barry,
Sadly the world is unfolding as it should.
With reference to the 'Big Picture', the largest bubble is bursting, the bubble in human moral development called capitalism.
Sadly there are some ecologists who, like you, have bright and informed blogs. They give us about 10 years before the BIG crash. (personally, I find them to be a trifle optomistic).
Happily, we could use the opportunity to reject competition and embrace global cooperation, cancel all debt, reboot a (regulated) system of exchange and stand back from the brink.
Sadly greed (that most alluring face of fear) may proove to be too flexible and facile a foe. (I tend to think of greed as Pandora's credit card.)
RE-BOOT, there is SO LITTLE TIME left.
Best of luck to us all.
Thanks for the blog.
Respectfully Yours...
Posted by: rudyman | Oct 24, 2008 7:28:31 AM
Rudyman: i agree. The economic collapse will be a token compared to when the environmental chaos really starts to hit home. It's lights out for humanity in the next hundred years or so. Enjoy the time you have left people.
Posted by: tom | Oct 24, 2008 8:09:41 AM
to sum it up:
- eliminate corporate taxes;
- increase personal income taxes;
- fixed currency exchange rates;
- shove US debt to china/japan under the rug;
does this sound veasible to anyone?
to me it sounds more like ramblings of a few old people.
Posted by: baychev | Oct 24, 2008 8:50:15 AM
If we're going to capitalize banks with $250B, why not seed NEW banks, run by people who had nothing to do with recent losses?
If the goal is really to "get banks lending again" then this would seem reasonable.
Let JPM, MS, BAC go their own way while seeding new banks with new capital (assuming that we've decided to throw capital into the banking system at all).
Posted by: Murph | Oct 24, 2008 9:42:23 AM
Murph - ever heard of the term "good ole boy network" ... even Daisy Duke has.
I don't know maybe its the glue? Maybe if it gets close to coming unglued the "good ole boy networks" make sure it gets ahead of it ... thats right ain't it Joe the Senator?
Posted by: Greg0658 | Oct 24, 2008 12:51:10 PM
