Paul A. Volcker Quotes

Fanny Mae was torn between its two duties: to make as much money as they could and to protect the mortgage market.

 
Context
This is typical of almost all government and semi government agencies. Does a government agency buy for as low a price as possible or give all a fair chance to compete, do police stop crime at the cost of impinging on civil rights, in the aftermath of the 2008 meltdown, does the government seek justice and punish the banks who caused the problem or build up the financial system so that investors and capitalists will have confidence and bring the system back to normal. Government, churches, charities and other non profit organizations all have this conflict between two or more duties and desirable objectives. This is one of the reasons that many of the great corporate leaders have failed in working for the government—they have difficulty coping with ambiguity and conflict of objectives. A company can ruin a community by moving a factory or office to a less expensive location, but generally the negative consequences are not major factors. For a government agency to ruin a community to save a little money is a much different matter.
Citations

Paul A. Volcker, Chairman, Federal Reserve Board, Interview, PBS The Charlie Rose Show, March 18, 2008

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Paul A. Volcker
Paul A. Volcker
  • Born: September 5, 1927
  • Nationality: American
  • Profession: Economist

Paul Adolph Volcker Jr. is an American economist. He was Chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan from August 1979 to August 1987. He is widely credited with ending the high levels of inflation seen in the United States during the 1970s and early 1980s. He was the chairman of the Economic Recovery Advisory Board under President Barack Obama from February 2009 until January 2011.

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