Paul Volcker, Fed Chairman from 1979-1987 and the man most responsible for saving the economy from runaway inflation in the early 1980s, explains his view of the current crisis.
"You get these situations where people don't trust their counterparties. The point is there is a lack of trust. This is the opportunity or necessity to restore some sense of trust that the banks are able to meet their obligations, and flowing out from that that the other institutions are able to meet their obligations. That unfortunately takes government support at this point. I hate this business where the government has to step in to protect the private market, but we're there. Let's deal with the larger goal - stabilize the economy. Let's get in there, get it done, then we'll rebuild the financial system. " - Paul Volcker 10/9/08
