Obama has perhaps never recovered from handing his administration’s plum economic jobs to Robert Rubin protégés with dirty hands from the bubble — Lawrence Summers, a deregulation advocate from the Clinton administration, and Timothy Geithner, an indulgent regulator at the New York Fed. Their presence has helped Obama’s more unscrupulous adversaries get away with the lie that his White House, not President Bush’s, created TARP.
I think Rich is selling Summers short. Summers doesn’t just have dirty hands — he helped steward the Phil Gramm (R-TX)-led repeal of Glass-Steagall through Congress, then convinced Clinton to go along with it.
TAPPER: One of the things that President Obama is pushing for is regulation of derivatives, and also with a thing called the Volcker rule, he’s trying to separate commercial banking interests from investment banking interests. These were things that were the opposite policies of Treasury Security Rubin and Summers at that time, do you think in retrospect they gave you bad advice on these issues?
CLINTON: [...] yeah I think they were wrong and I think I was wrong to take it because the argument on derivatives was that these things are expensive and sophisticated and only a handful of investors will buy them and they don’t need any extra protection, and any extra transparency.
Thus, Larry Summers planted the seeds of the worst financial crisis since the Great Depression, which came as a result of repealing an important piece of the New Deal.
Now, forget how it looks, which is of course, terrible. Why was Summers allowed anywhere near government after that — let alone given an important post in a Democratic administration?
And Summers didn’t even clean up his own mess properly. He’s the one we have to thank for the stimulus being too modest.
Heckuva job.




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Never trust a man with no fucking neck!
As long as I live I will never figure out Obama. So many of the things he did were gratuitous and senseless.
Summers was a classic DLC/Village/MOTU insiders pick.
Not very changey.
Larry Summers is the idiot who thinks women don’t have the intelligence to work in math.
But given his skills, apparently he is more of an idiot than those he insults.
Maybe Summers lacks some innate ability competently govern.
Made sense for the Illuminati/New World Order/Rockefeller/Rothschild/Military Industrial Complex.
Obama’s instincts are exactly the same as Summers’. Both are deeply arrogant elitists who identify with the rich. Obama hasn’t been disserved by Summers. Obama IS Summers.
I hope that’s a joke.
Larry is extremely more competent than Brown, except you perceive his goals to be congruent with yours.
An economist is someone who got an A in differential equations and has stupid ideas about human beings.
How? Obama is tied to the Chicago School in deed, whatever his speechifying.
Heckuva job – Summers!
Has a ring to it, wonder if it will carry clear to the White House.
He might have found one with less of a record.
Sometimes what I think is that Obama made long-term plans way back in 2005 or even earlier, and that he’s the kind of long-term thinker who doesn’t let events throw him off his plan. Which basically means that he took the financial crash to be a perturbation rather than a world-changing event.
Greenspan and Rubin were the devils – the ring masters – Larry is just not that strong a personality – but he is always arrogant.
He was for derivative regulations before he was against it – and was for the use of surplus to give everyone a small leg up on a voluntary payroll deduction 401k plan that used a single fund run by the SSA, before he was informed closing Wall Street out of the action was bad (Greenspan’s market choice cures all).
My read is he just found that riding the Greenspan wake meant Phil Graham and Newt and Rubin and Greenspan were on his side – and that his natural super arrogance fit in well with them. I read him as an Obama type – no strong beliefs or abilities or leadership – but great at hiding behind others (see Catfood commission where Onama’s fingerprints will be hard to find until it is noted who chose the members of the commission and indeed who demanded a commission after Congress rejected the idea).
Obama is supposed to be a political genius, and he looked like one in November 2008, but unless he actually wants to be a one term President (i.e., unless he’s using the Presidency as a stepping stone to something bigger in the private sector) he’s been dropping the ball.
Larry’s other brilliant record of success–I mean apart from chopping down a central pillar of the New Deal–was taking Harvard’s endowment to the dog track and blowing like a third of it. Accountability never applies to elites, dontcha know.
The Lawrence Summers Memorial Hole in the Ground.
A allegorical work portraying of the US economy under Prof. Smartest Guy in the Room.
I’d appreciate it if you would point to something Summers got right.
What they have in common is that they’re “team players” in the Mafia omerta sense.
LOL – I don’t think they all got A’s in diff-i-que
Those utility curves are derivatives (calculus type) and I am not sure that all published papers understand that. I am sure that many could never solve a differential equation problem or understand the representation of all the possible answers for a given differential equation (but then I am not sure I still could :-) ).
Say what?
Sometimes it helps to use Powell and Rice as a model. Similar constraints, similar ambitions, same solution to the problem of personal advancement from similar circumstances – just happen to fit better to the sales narrativbe of the other ‘stablishment party.
Larry Summers also blew up $1.8 billion in cash from Harvard University’s operating fund when the market crashed in 2008. Beth Healy, a Staff Reporter with the Globe reported in November, 2009,
Link.
He’s just the guy a f*@*ing re*%#d would want as his most trusted economic adviser. You know, someone just as smart as Rahm.
Summers has some very serious felony-level baggage from his time in Russia, though as I understand he beat the rap.
Personally I think he is resigned to a one term presidency. Seems to be the only thing explains his behavior.
He got hundreds of billions to his savvy banking buddies and the hedge fund managers who paid him consulting and speaking fees.
That he didn’t do what you and I wanted doesn’t mean that he didn’t accomplish what he wanted.
It is about time that more and more articles like this needs to be said over and over and over and over. I was SHOCKED at President Obama when he chose Geitner, Summers and Rubin to even help.
These are the most corrupt people who think they are chameleons. I have been wondering why Paul Volcher hasn’t been on the scene more often.
I believe if President Obama dismissed Geitner and Summers now, we could save the wrath in November. If we can get Mr. Volcher in the news over and over and over again, people will believe in the President’s desire for change.
We won’t have change until these grubs are gone and back on Wall Street raking in the money.
In terms of Summers himself, the women’s vote would be greater since it was him that said women are not good at math that got him thrown out of Harvard and people like Elizabeth Warren would put him in his place.
“Obama is supposed to be a political genius, and he looked like one in November 2008″
Obama is brilliant at getting elected. He’s just sub-par as a president.
“Obama is the kind of long-term thinker who doesn’t let events throw him off his plan”
In other words, he doesn’t let reality change what he thinks. Didn’t we lambaste George W Bush for exactly that?
I meant nothing good by saying that Obama was a long-term thinker. The world changed in 2007 or so, and Obama hasn’t noticed yet because it doesn’t fit into his long term plan.
Frank Rich:
You’ve got that shit right. Only actions matter at this point, Sanstesticles has used up any good will he had.
He lacks some innate ability to recognize that he ain’t always the smartest guy in the room.
Also he looks like an overstuffed suit.
Book Salon up with Will Bunch’s The Backlash: Right-Wing Radicals, Hi-Def Hucksters, and Paranoid Politics in the Age of Obama hosted by Cliff Schecter
Can’t help but agree with this. He’s not incompetent, he’s obviously served the interests of his constituency very, very well. After all Wall Street has never had it so good as they’ve had since the collapse of the economy.
Summers is proof positive that Obama is on the wrong side of the class war. I am a white working class male. Liberals like to say my demographic votes against it’s own interest. Any non billionaire who votes for Obama votes against their own interest.
Rubin, Summers, Greenspan, Bernanke, and Geithner will be remembered as the economists that wrecked America. Oh, that’s right, Geithner isn’t an economist or a regulatory which sorta makes him (if Obama insists on being treated like a dog) the lap dog for the banksters.
I doubt we’ll get to see that on a Time magazine cover.
Obama is behind the times. The world changed in 2008, the year that American capitalism killed itself in a orgy of greed, fraud, and corruption. If, as Obama states, the Republicans drove the car into the ditch and now they want the keys back, why did he hand over the keys to all the taxpayers cars when they bailed out the crooks that caused the financial crisis?
Summers has publications (many of them) as part of his track record. Most of the academic ones are listed here at google scholar. They seem to be ranked in decreasing order of how many citations each received by other authors; Summers with other coauthors and on his own gets cited quite a bit. This does not mean that those papers are “right” necessarily, just that others find, and long have found, that they have to acknowledge works in which Summers has participated as part of the area under discussion.
I point this out merely to suggest that a certain technical competence, including an ability to see through conventional wisdom, is not necessarily the problem (here or anywhere, really).
Are you serious? Using derivatives without understanding what a derivative is? I never got the hang of derivatives in the sense of being able to “see” what they described, but I understood where they came from; they just never made sense to me the way the equations from which they derived did. Who publishes these papers?
What was Obama thinking to hire this asshole and then back him up even after a disastrous two yr. run? I’m not sure who is more retarded Barry or Larry?
Amen.
In the true government (the one you don’t see) Summers outranks Obama.
You think Obama chose these people?
They chose him.
Unfortunately, McCain’s not on our side, either. And Palin, well, need anyone say more?
The front man with his ruling clique? Maybe, but Obama has the conceit to think he’s in charge. And to the extent he wanted the job, he is. Moreover, there’s not a man or woman in his administration who can stay one minute longer than Obama wants him/er there.
Yeah, “Recovery Summer” has been great! You’re doing a heckeva job, Larry!
absolutely. summers’ goal, like obama’s, is to concentrate wealth in the hands of rich people. they are both doing great.
I thought Arne Duncan was Obama’s Michael Brown.
arne is succeeding, too. he is forcing states to compete against one another for the resources they need to educate children. the states win when they are willing to give up universal free public education-for low income and minority children-and accept something….else.
is it not telling that there are no for-profit military academies in highland park or glencoe or lake forest? but in the city of chicago, there are lots? somehow, mysteriously, public education works in the north shore suburbs but in the city it causes failure and blight and must be replaced by….for-profit military academies.
yep. if his goal is to keep the american underclass in what he regards as its place, arne is a smashing success.
You are right of course. Democrats AND Republicans have sold out. They have ruined the country. That’s why I say the very least folks can do is stop voting for them.