Okay, this is actually kind of funny.
Paul Volcker, the former Fed Chairman, the guy who maneuvered us through the inflation mess in the early ’80’s, made a speech on Tuesday to a group of higher level financial executives. These are the “power” people in the industry, the “who’s who” of the top financial firms.
What does he tell them? The best thing that they have done in the last 25 years was to invent the ATM machine.
That box where you put your debit card in and it spits cash back to you? Yeah, that’s the ticket.
What’s his point? That all of the “exotic” financial tools that have been developed, derivatives, CDO’s, CDS’s, MBS’s, TIPS, and a whole variety of other acronyms really haven’t done anything useful for the world’s economy.
Ouch, that’s a stinging rebuke…..
Tom Vanderwell
Ex-Fed chief Paul Volcker’s ‘telling’ words on derivatives industry – Telegraph
The former US Federal Reserve chairman told an audience that included some of the world’s most senior financiers that their industry’s “single most important” contribution in the last 25 years has been automatic telling machines, which he said had at least proved “useful”.
Technorati Tags: Paul Volcker, ATM Machine
David Losh says:
I can’t believe no one commented about this.
It is so true, and the source, Volker, has got to be the best rebuke to an industry that he saved the first time.
December 11, 2009 — 8:36 am
Thomas Johnson says:
I always thought that 10 points in the back end on a 6% loan was a pretty neat trick.
December 11, 2009 — 9:46 pm