Wednesday, June 3, 2009

Volcker Says Full Economic Recovery is Years Away

/PRNewswire / -- Speaking yesterday to 500 Brooklyn Law School graduates at their commencement, Paul A. Volcker, Chair of the President's Economic Recovery Advisory Board, said a full economic recovery is years away, and the U.S. must eventually cut back on borrowing from abroad. Mr. Volcker is widely credited with taming runaway double-digit inflation in the 1980s when he served as Chairman of the Federal Reserve Board.

A transcript of the speech is available at the Brooklyn Law School Web site,

Mr. Volcker said the nation has long been spending beyond its means. The U.S. faces "an unimaginable budget deficit as far as one can see," he said. The recession, which began in December 2007, "is bound to be the longest recession since World War II and could turn out to be the deepest as well."

He said that new regulations are necessary to prevent another crisis. "In my view, as joined by many others, sweeping reforms are truly necessary, in banking, in markets, and in our regulatory institutions," Mr. Volcker said.

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