Where’s Volcker?

If you want to know why the administration’s approach to the credit crisis has been lacking, and why the Obama bailouts looks surprisingly like the Bush bailouts, consider this: No Volcker.

“The one-time central banker has been put in charge of a presidential advisory board that hasn’t yet had a formal meeting. It has been nearly a month since he has seen Mr. Obama. Mr. Volcker hasn’t been a main player in key decisions handling the global financial crisis.

Treasury Secretary Timothy Geithner unveiled the administration’s plans for handling troubled financial institutions and the housing crisis without seeking input from Mr. Volcker, associates say. “Paul was surprised” at the failure to consult him, particularly on issues of financial rescue after his dominant role in resolving financial crises in the 1980s, says one person who has spoken to Mr. Volcker recently.”

To review: You have access to the greatest Fed chief in history, and you are choosing not to use him during the greatest crisis since the Great Depression.

I wonder what White House aide is too insecure to let the big dog loose . . .


Volcker Assumes Smaller-Than-Expected Role With Obama
WSJ, APRIL 11, 2009

See also:
The Path of Kohn: Crisis Changes a Fed Vet
WSJ, APRIL 11, 2009

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