UPDATE: Summers still on POTUS shortlist for the Fed: Summers is unsafe at any speed based on his track record of conflicted deceit and indefensible judgments. And America cannot afford this kind of mistake.
President Obama said Friday that he’s considering a range of outstanding candidates to be the next chairman of the Federal Reserve and that he’ll make his decision in the fall.
He also said that former Treasury Secretary Lawrence Summers and current Fed Vice Chairman Janet Yellen are both highly qualified for the job, during a White House news conference.
“I consider them both outstanding candidates,” Obama said, referring to Yellen and Summers. And he also said that he had a “range of outstanding candidates” although he did not name any others. In his meeting with House Democrats, Obama had said that former Fed Vice Chairman Don Kohn was also being considered for the job….”
POTUS has a track record of appointing culprits from the financial crisis as economic and financial advisors. And Larry Summers has a history of terrible judgment in addition to having been one of the most prominent cheerleaders for deregulating greed.
Clinton said recently that he regretted following Summers’ advice to sigh Gramm-Leach-Bliley which killed Glass-Steagall and the 1956 Bank Holding Company Act, as it removed the barriers to sociopathic greed in the name of free markets which are supposed to self-correct. And the self-correcting Wall Street lie underwrote the excuse to remove the cage that had functionally contained sociopathic greed for 6 decades. (A market is just a bunch of people buying stuff, and it is self-evident that mankind has exhibited a plethora of irrationality during the past 65,000 of the existence of the human race.)
Larry Summers is as bad as a pick can be to head the Fed and be the chief regulator of Bank Holding Companies, ask Elizabeth Warren who knows him well and understands how disgusting this would be. And my new book exposes why in depth as well as these two articles:
WEIGHING PICK FOR FED CHIEF, OBAMA DEFENDS SUMMERS
Published: July 31, 2013 http://www.nytimes.com/2013/08/01/us/politics/obama-goes-to-capitol-to-soothe-anxious-democrats.html?hp&_r=0
“WASHINGTON — President Obama on Wednesday offered a strong defense of his potential choice of Lawrence H. Summers to head the Federal Reserve, though he said no final choice had been made.
Speaking to members of the House Democratic caucus on Capitol Hill, Mr. Obama said in answer to a “barbed question” from a lawmaker that he believed Mr. Summers, a former senior economic adviser to the president, had been maligned in the liberal news media, according to Representative Gerald E. Connolly, Democrat of Virginia, who took part in the meeting.
According to Mr. Connolly’s account, the president described Mr. Summers as a rock of stability who deserved credit for helping steer the American economy back from the financial crisis of 2008 and the ensuing recession. Mr. Obama, Mr. Connolly said, singled out the negative coverage of Mr. Summers in The Huffington Post.
The president, Mr. Connolly said, emphasized that he had not made a decision on the next Fed chairman, adding, “I’m not even close to making that choice.” He did not address the criticism of Mr. Summers over his record on women’s issues, which have dogged him throughout his career…”
Saturday the Times reported the President said he wants someone who won’t just work abstractly to keep inflation in check and maintain stability in the markets. He says he wants the next Fed chairman to also promote policies that will help make ordinary people’s lives better.
Listen to Alan Grayson’s cryptic and accurate description of Summers: Grayson defines “Larrying” as in Larry Summers. http://youtu.be/34rr5R_IULg
Summers’ track record of deceit, conflicts as well as rotten judgment is well known:
- As Treasury Secretary under Clinton teamed up with Alan Greenspan to deregulate Wall Street.
- Advised Clinton to sign Gramm-Leach-Bliley which repealed Glass-Steagall and the 1956 Bank Holding Co. Act – and Summers said this: “Today Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the 21st century.” (the system was laissez faire unfettered rapacious sociopathic greed)
- And continued – “This historic legislation will better enable American companies compete in the new economy.”
- Further, Summers joined by then SEC chairman Arthur Leavitt and Fed chairman Alan Greenspan effectively quashed efforts to regulate derivatives. (The kind that caused the financial crisis in 2008.)
- On 4/18/10 Clinton on ABC said Summers was wrong to advise him to not regulate derivatives. (And now understands how wrong, and conflicted Summers’ was to advise him to sign Gramm…)
- He was fired by Harvard as president for misogynist remarks and attitudes toward Harvard women faculty.
- During his presidency Summers approved $3.5 billion derivative investments, which ultimately cost Harvard about $1 billion.
- When he was Obama’s economic advisor Summers in 2009 argued for more tax cuts (for the job creators?)
- As the financial crisis bloomed Summers advised to reduce the amount of stimulus – which economists like Krugman and Stiglitz viewed as crucial to improve infrastructure and stimulate the economy by creating good paying jobs, and therefore increase any propensity for recovery.
- In 2009 it came out that Summers received millions of dollars in 2008 from companies he had government responsibilities to influence, which was a germane conflict.
- He received $5 million from the D E Shaw hedge fund, and collected in excess of $2.7 million from Wall Street Banker that were paid to him from TARP funds.
So what can Obama be thinking? It is a grotesque thought to consider that POTUS has even mentioned Summers name let alone defended a highly paid Wall Street shill whose advice to deregulate precipitately unleashed all the sociopathic narcissist greed that caused, what the press calls, the financial crisis, as well as the sea shift of wealth to the already rich.
Summers was instrumental in the creation of our era of financial inequality – as a proponent of the economic ruses/theories that let greed out of a cage, and as a sociopathic admirer and enabler of Wall Street and big business greed. Summers was a shill for the job creators – which defines him as a morally bankrupt and despicable human being who is totally unfit to assume any responsibilities at the Fed or in anything that requires a profound concern for the social welfare of we the people.
Obama should know better.
Buy my book from Amazon, about which David Satterfield, former Business Editor of the Miami Herald and two times Pulitzer Prize Winner, said this:
“This should be must-reading for every policy maker in Washington and every student of economics and finance.”