"Altogether the 81-year old Volcker can hardly see anything good in the development of the financial system in the last 25 years. The current crisis is only the peak of a development marked by grave crises every five years for 25 years..
Like New York 30 years ago, the whole country has now lived far above its means and is addicted to consuming more than can be produced. The result is the disappearance of private savings, rapidly increasing imports and an enormous trade deficit..
At the end no financial juggling could maintain the intolerable for ever, Volcker concludes. The painful and necessary reorientation must now be forced on the economy."
to read Rainer Sommer's article on Paul Volcker and Moritz Koch's article on Elizabeth Warren, click on