Brains aren’t the same thing as good judgment, and while Summers may be smart, I am aware of no evidence that he is wise or even has any common sense.

Many people make the mistake that smart people have good judgement. This isn’t true. A lot of them are too smart for their own good at times. This isn’t an endorsement of Bush’s “proud to be stupid” mantra, but we need someone as Treasury Secretary with a lot of common sense to go along with some brains.

For his next act, Larry Summers will predict that Obama will be elected President. The man is amazing.

Robert Reich was ahead of the curve on this. At least his regular NPR reports gave credence to the fact that a house of cards was being built.

Paul Krugman was on the mark too until somebody poisoned his mind vis a vis the ridiculous and nefarious Bailout.

There are way too many Goldman Sachs guys in the mix. Paulson, Kashkari, Rubin, Blankfein and more. Did you see the Paulson/WAMU story? Brass Balls.

I am aware of no evidence that he is wise or even has any common sense.

Evidence to the contrary, however…

Someone who has an appreciation of what consequences could result, and how they would feel to human beings, that’s what I’m looking for. That intelligence, plus foresight, plus “I’ve been there” empathy.
I don’t like this Summers guy.

Is it something about economists? Henry Paulson today announced that he knew at the time the buy up of toxic assets (for which he needed that $700 billion Congress gave him) wasn’t going to work. How prescient is that?

Summers always struck me as too self-important to deal effectively with others (witness his well-known behavior at Harvard). Add a lack of people skills to what appears to be a lack of judgment, as you point out, means he should be skipped over. We can’t afford at this juncture in history to continue to choose people for how they “seem” or whether you’d want to have a beer with them. (Not that I’d want to have a beer with Summers.) Good column, Ian!

One of the things I like about Obama is his apparent desire to surround himself with people willing to argue from across the spectrum. I hope that his cabinet secretaries are like minded.

Summers looks a bit like Larry Flynt, but not as handsome or smart.

Too bad Ravi Batra or Reich aren’t in the running. It would be nice to have someone in that position who isn’t an asshole.

Thanks Ian.

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But Summers is a member in good standing with the Villagers so that’s really all that matters.

As witness Michael Kinsley the other day in the WaPo0’s Post Partisan and America’s Concern Troll who touted Summers for Treasury yesterday.

After all, the Villagers just have to be comfortable with those they share cocktail weenies and quail wings with or it’s a disaster, right? /s

Some of the CNBC reporters were going nuts after Paulson’s PC. One held up a sign to describe the bailout, “bait switch.”

Let’s think of alternatives to Summers. He is a strong default candidate. I don’t think we need anyone right now from the financial community, and that means no Rubin, though Rubin would probably be good at it. So who else then? Jamie Galbraith? I don’t think so. Smart guy and affable and on our side, but not the person to run Treasury? Robert Reich? Not in a million years. Alan Blinder? Maybe, but what do we know of his administrative abilities? I go through the list of economists in my mind, and I don’t find many people with the energy and experience and hard-core ability of Summers. The thing about Summers is that he actually served as Deputy Sec Treasury for a significant period prior to being moved up upon Rubin’s retirement. There are a lot of economists with Summers’ skill set and basic outlook. Replacing that part is nothing: but there is the combination of executive experience and that skill set that matters. He can set up the team that is needed to make the place work.

I just don’t see any particular reason not to support his appointment. I can be persuaded otherwise, but haven’t been so persuaded by arguments in play to this point.

Summers like the Clintons is a Wall Street paver. No more Summers

Summers did not only speak after the barn door was open, he was one of those that opened it.

From the NYT, The Reckoning–Taking a New Look at a Greenspan Legacy; Oct. 8, 2008

http://tinyurl.com/6yzsff

In 1997, the Commodity Futures Trading Commission, a federal agency that regulates options and futures trading, began exploring derivatives regulation. The commission, then led by a lawyer named Brooksley E. Born, invited comments about how best to oversee certain derivatives.

Ms. Born was concerned that unfettered, opaque trading could “threaten our regulated markets or, indeed, our economy without any federal agency knowing about it,” she said in Congressional testimony. She called for greater disclosure of trades and reserves to cushion against losses.

[snip]

In early 1998, Mr. Rubin’s deputy, Lawrence H. Summers, called Ms. Born and chastised her for taking steps he said would lead to a financial crisis, according to Mr. Greenberger. Mr. Summers said he could not recall the conversation but agreed with Mr. Greenspan and Mr. Rubin that Ms. Born’s proposal was “highly problematic.”

Also, look up Harvard and the Shleifer scandal, looting Russia division. Google is your friend.

Well, Knut, there is Stiglitz or even Bair.

During his time at Treasury Summers helped deregulate the financial system and helped create the conditions that led to the current meltdown. Do I include that as part of his skill set? This reminds me of McCain’s argument that he was ”experienced”. What does that mean if he was always wrong? That’s the kind of experience I can live without whether it’s McCain or Summers.

Curious…why not Reich? I haven’t heard the case against him.

I just saw these quotes over here:

In a 1998 speech during the Asian financial crisis, Lawrence Summers preached the merits of American-style “transparency and disclosure”. It is the US that now needs “transparency and disclosure”.

And in a Berlusconi moment,

One mainstay of the US economy has been its financial system – “financial” engineering has long overtaken “real” engineering. Lawrence Summers, a former Deputy Secretary of the US Treasury, proudly extolled the merits of the US financial system in a 2001 speech at the London Stock Exchange in the following terms: “… the United States is the only country in which you can raise your first $100 million before you buy your first suit.” He gave short shrift to critics who felt that US financial sophistication was synonymous with financial instability: “[That belief] is observed in inverse proportion to knowledge of these matters.”

For a bit more on Summers’ judgment (or lack thereof) here is a terrific Oxdown diary from Professor Foland.

The Bailout money is for executive compensation and bonuses. We don’t want these talented Goldman and Morgan Stanley executives to be lured away by the private sector!

What’s that? It is what I say it is and nothing more, said the Queen. Alice In Wonderland.

Though he was prescient about the financial crisis, forecasting it last fall…

Anyone who read economy/business blogs knew that Everyone had doubts about Bush/Greenspan lowering interest rates and causing the Housing Boom to reignite the economy.
I’m guessing John Heilemann does not read the blogs. Heck even readers of political blogs knew it was coming although not exactly when.
MainStream Media the last place to find out the Real Bad News.

Hanky Panky Paulson’s major accomplices are at Goldman Sachs. These thieving perps are totally immoral and think that they can get away with anything. And they do! First, Paulson and Cash-and-Carry wanted to buy the Crappy assets to somehow fix the “credit crunch”. Then they wanted to just give the newly designated “banks” such as GS money for nothing. These phony banks were then going to buy anything they wanted. They were allowed to buy bankrupt assets for the tax breaks. Then Paulson secretly tips off his rich friends on what Treasury would do, to give them a financial advantage.

But this sordid caper only becomes more criminal as Predatory Capitalism wants to steal everything. The latest heist is GS received enormous fees to sell California State Bonds. Now Goldman Sacks tells its “clients” to bet against these same bonds. I guess their mistresses and prostitutes must be getting more expensive.

Goldman, Sachs & Co. urged some of its big clients to place investment bets against California bonds this year despite having collected millions of dollars in fees to help the state sell some of those same bonds.

The giant investment firm did not inform the office of California Treasurer Bill Lockyer that it was proposing a way for investment clients to profit from California’s deepening financial misery. In Sacramento, officials said they were concerned that Goldman’s strategy could raise the interest rate the state would have to pay to borrow money, thus harming taxpayers.

Larry Summers is with us on everything but financial regulation and sexism.

I thought Obama was No Drama? At best this guy has the social skills of Bush without the charm, but he does like to say dumb things in public just like Bush.
Only he uses his intellect as an Appeal to Authority as cover, something Bush can not Ever be accused of.
Still what are his views on the economy maybe he could have a PR person do all his talking.

in stiglitz’s favor he was in the clinton administration and then at the world bank (both policy-type positions vs ivory tower-type). he saw what happened first hand at treasury and has spent much of the time since apparently thinking about what went wrong, what could be done differently and attempting to educate the public via his books. also he has a strong populist streak in addition to his progressive, pragmatic orientation.

in bair’s favor, she has been in the thick of dealing with the current crisis so she could hit the ground running.

personally, i’d like to see positions for both – and roubini as chair of the council of economic advisors for his ability to see both the big picture and the road ahead.

That gives them a better record than him. Sure, he’s a very competent technical economist, he’s written some good papers, but in a policy job understanding the consequences of policy actions is rather important. And when he both didn’t call the financial crisis ahead of time and pushed for deregulation over the voices of people wiser than him screaming “this is a bad idea”, he proved that, in fact, he doesn’t understand the consequences of the policies he espouses.

Who is better that we can get Paul Krugman would reassure regular America, forget who WallStreet wants Regular America not buying anything is the problem
now.
An economist approved by WallStreet will reassure investors first, to bad WallStreet really needs less assurance and more reassured customers.

All these unflattering comments about our next Treasury Secretary. Tsk tsk. /s

Also a good heart to we need someone who asks how his or her actions will this effect those most in need first. Take care of the people make them wealthy and business will prosper.

Its a done deal?

Whoever is currently discussing de-leveraging is a good candidate as well as a rare bird.

You missed the snark tag. I haven’t a clue who will be the next TreasSec. *g*

Paulson’s presser is being replayed on cspan. What a jerk.

He’s mixed up Fore Thought aside from being Titan comes before the act. After Thought his twin occurs After a thought, being prescient requires Fore thought.

http://en.wikipedia.org/wiki/Pandora

Those folks would be fine with me as well.

Everybody these days is trying to read the tea leaves on who Obama will pick,or which GOPer will fall next:)

i was able to catch part of it – now schumer is giving his take. ugh.

Markets down 8,315 it might go below 8,000 before Bush leaves office a 300 point drop is just a bad day on the market.
Bush’s lagacy as the first Harvard MBA suggests Harvard needs to either stop giving Legacies diplomas and or change the MBA program.

How about a new requirement: “Show all work.”
;-)

Atrios for Treasury Sec’y! Why not! Duncan Black has his finger on the pulse of the people!

Crude oil for December delivery fell $3.17, or 5.3 percent, to $56.16 a barrel at 2:46 p.m. on the New York Mercantile Exchange, the lowest settlement since Jan. 29, 2007. Prices have tumbled 62 percent since reaching a record $147.27 on July 11.

http://www.bloomberg.com/apps/…..=australia

My bold $56.16 a barrel at today’s devalued Dollar? I wonder what the price would be in Clinton era Dollars. 6 months for a change to work its way through the economy so if prices stay low that should be good news…for Obama.

Yeah I like it.

Legacy admissions my take the economy and the nation cannot afford to be led by legacies anymore.

http://oxdown.firedoglake.com/diary/1270

Howie Klein has an honored guest, upstairs!
Blue America Welcomes Back Senator-Elect Jeff Merkley (D-OR)

Not advocating for Summers, but to be fair:

January 2006:

http://www.ft.com/cms/s/0/f925…..ck_check=1

http://www.thecrimson.com/article.aspx?ref=510933

January 2007:

http://www.bloomberg.com/apps/…..RtIlTTEx2Q

Intelligence and empathy is a great combination. Mr. Obama has that.

Let’s hope his cabinet does too.

That’s exactly it – and that’s the problem.

With Summers, Volcker and Geithner widely considered the current most-likely picks for Treasury, I have another idea:

Draft Paul Krugman for Treasury Secretary!

Included is this link to today’s NYT interactive Cabinet Selection page, where Krugman is (as a write-in!) #4 right behind Geithner!

Go there and type-in Paul Krugman!

OT maybe
Baby we been played.
Bush vs China over in the middle east.
Bush invades to Iraq cut off the Chinese oil access.
Bush miscalculates cost and length of war.
Because we were sold out in manufacturing China,making a nice profit from manufacturing,is able to lend us about, say ,1 billion per day for the war. ( Norseflamethrower reminds us we’re past 1800 days or $1,800 billion)Since bailout fever hit at the beginning of September ( like the scraping sound on the TO BIG TO FAIL TITANIC) US borrowing is on track to the tune off $ 9 trillion a year, according to a post over at the KOS.
Reported on NPR today IRAQ signed an oil service contract with the CHINESE to develop their oilfields without the percent cut we were demanding. Checkmate, now that China is doing their own bailout if they decouple from the dollar no more billion a day for our addictive warrior behavior or anything else. They won without firing a shot or putting one of their solders in harms way. Point, set ,match?
Is that why,at the press conference Paulson looked like the captain of the Titanic shouting out orders to right this ship and save us?
Am I missing the big picture Ian?

Another possibility (since he is so smart) which is far worse than Summers being late on the financial meltdown call is that he actually did predict the crisis but was too chickenshit to stick his neck out until it was safe that he was correct. This very real possibility would be further evidence of Summers’ character flaws that would be disastrous in a position of consequence.

Krugman ain’t getting no job in an Obama administration – no how, no way. Krugman did something far, far worse than LIEberman supporting mccain and dissing Obama: he supported by clear innuendo, Hillary Clinton. Unlike siding with republicans, in Obamaland, supporting HRC will get you banished to Siberia.

This piece,

Lawrence Summers: a Suicidal Choice

from Exiled, is the definitive takedown of Summers.

He’s a bigger scumbag than has heretofore been revealed. If Obama appoints this guy, in this climate, we’re in for a ride.

http://tinyurl.com/67hs3m

I get the feeling Summers isn’t appreciated around here.
How do ya feel about Volcker?
If not them then who do you think Obama could seriously consider?