So Volcker has been kicked out

President Obama's announcement, that Paul Volcker is to step down as Head of the Economic Recovery Advisory Board, is a sad one.

Volcker has struggled hard to bring at least some sanity into the environment for the financial system.

I take his departure, and his apparently imminent replacement with Jeffrey Immelt of GE, as a sign that the irrationalists are winning, and that the environment for the financial system is now nearly back to what it was just before the crisis.

In other words, we should get ready for a new crisis - and any new crisis will be worse than the last one. Sphere: Related Content