Summers withdraws from Fed race – FT.com

White House portrait of Lawrence Summers.

White House portrait of Lawrence Summers. (Photo credit: Wikipedia)

This is an amazing, MUST-READ story in the FT. Check it out!

Summers withdraws from Fed race – FT.com.

Larry Summers is a brilliant economist but as a practitioner he has made enemies. The left blame him for deregulation under the Clinton administration which paved the way for the banking crisis of 2008. Meanwhile, the right are critical of him in the early days of the Obama administration when he guided towards major stimulus of the economy.

Many prominent economists, like Nobel prize-winning Joe Stiglitz publicly favored Janet Yellon over Larry Summers. However, the tipping point was when a number of very powerful Democrat senators announced they would oppose Summers’ nomination for the chairmanship of the Fed. Others will cite Summers’ personality as not being suitable for the consensus building role at the Fed.

At another level, this story will be damaging for President Obama who had intimated that Summers was his preferred candidate for the Fed role. It will be seen as a sign of weakness that Obama could not get his way.

Personally, I have always felt that Janet Yellon is supremely qualified to take over as the chair of the Fed, probably one of the most powerful positions in the World.

Any views?

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My two cents on Larry Summers as next head of Fed – John Gelmini

English: Official picture of Janet Yellen from...

English: Official picture of Janet Yellen from FRBSF web site. http://www.frbsf.org/federalreserve/people/officers/yellen.html (Photo credit: Wikipedia)

 

Larry Summers was the man who at the behest of Wall Street, helped to abolish Glass Steagall.

He like them likes unfettered markets where bankers and those who control them are free to transfer risks to the taxpayer whilst profits accrue solely to the plutocratic few.

 

Obama’s financial backers want Larry Summers to be Federal Reserve chief not the more eminently qualified and consensual Janet Yellen.

 

Dr Alf wonders whether President Obama is taking too long to make his decision about who to appoint to the Fed role?

 

The answer is yes because in this as in all other important decisions he is not the one actually making them and therefore the timetable is not within his control.

 

Time will tell whether the Wall Street plunderers and their friends get their way or whether the truculent and obnoxious Larry Summers is imposed against the wishes of almost everyone else and especially those who believe in sound money.

 

John Gelmini

 

White House portrait of Lawrence Summers.

White House portrait of Lawrence Summers. (Photo credit: Wikipedia)

 

 

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