Benjamin Friedman: evaluation

Transcript context

…That was an incorrect word. You’re right. There was no deflation under Volcker. It was a disinflation. During the period of the Volcker disinflation, this firm called Lone Star Industries in Texas used to take out full-page ads in The Wall Street Journal about what a criminal Paul Volcker was. I happened to have been working in the Federal Reserve Board one summer. This was in an earlier era in which security in buildings like this was much less, so we would just come and go and walk in and out. One day, out in front of the building, this enormous flatbed truck pulled up, stacked high with lumber. We all went down and looked at it, and what was it? The truck driver gets out and he says, “I have a delivery for a Mr. Volcker.” We all said, “Well, what is that about?” Eventually, we got to see the letter that came with it. I can’t remember whether it was from the same firm, Lone Star Industries, or not, but it was from some construction company. Basically, the note said, “Paul, because of you, I can no longer use this lumber. So here, you take it. You take it.” Well, this was the kind of stuff [laughs] that was going on. Was Paul Volcker overrated, underrated? As much praise as he received, I think he’s one of the most underrated people I’ve ever known. Annuities — why do the markets for them function so poorly? Is it an underrated thing, more people should buy them? Or it’s just never going to make sense?…

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