Paul Volcker: Automakers, AIG and Investment Banks Should Not Be Bailed Out
Posted on | September 24, 2009 | No Comments
Paul Volcker, former Federal Reserve Bank Chairman, made a statement on Thursday, September 24th, 2009 that automakes, AIG and investment banks should not be bailed out. He agreed that traditional banks should receive government aid to survive but insurance companies like AIG, automakers like GM and investment banks like Goldman Sachs should not receive money from taxpayers. “The safety net has been extended outside the banking system,” Volcker said. “That’s what I want to change.”
Volcker, 81, currently serves as the head of President Obama’s Economic Recovery Advisory Board. In this position, he feels the administration should take a slower approach to overhauling the current financial system. Volcker served as Fed Chairman from 1979 to 1987 when he controlled rampant inflation through several rate hikes.
Volcker also made the statement, “A lot of what needs to be done really does require a certain consistency internationally, because these problems are global.” The problems that are taking place in the United States are not limited to our country. Almost every country is going through the recession so hopefully the world can work together to rebuild the global economy.
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Author: Jesse Wojdylo
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