by Calculated Risk on 10/14/2008 09:27:00 AM

From IHT: Volcker warns of "considerable recession" in US

"I've seen a lot of crisis, but I've not seen anything quite like this one," Volcker said in a speech in Singapore. "I don't think we can escape damage to the real economy. I think we almost inevitably face a considerable recession."
...
"These kinds of measures — government guarantees and interventions — are really distasteful," said Volcker, who was Fed chief from 1979 to 1987. "However distasteful, I'm afraid they were necessary in this emergency to restore some sense of stability and confidence."
...
"Those banks have been nationalized, overtly or not overtly, which is something that hasn't happened before in the history of developed countries," Volcker said. "How to wean them from government support? That is the challenge of the future."

Once we see a thaw in the credit markets (right now the credit markets have improved only slightly), then I'll update my forecast on housing, the economy and unemployment.