Janet or Larry...Anyone Fed up yet?

bee

From this article:

does-larry-summers-have-integrity

"Back in the '90s, Summers had pushed hard to open up capital flows around the world. He had fought against efforts to regulate swaps and other derivatives. He had backed the 1999 repeal of the Glass-Steagall law, permitting commercial banks to jump into risky investment-banking activities, as "historic legislation" that would "replace" Depression-era rules "with a system for the 21st century." At the Jackson Hole central bankers gathering in 2005, when University of Chicago economist Raghuram Rajan had presciently raised questions about the growing risks in the financial system, Summers had publicly ridiculed Rajan. Summers spoke of how much he had learned from Fed chief Alan Greenspan, the Ayn Rand devotee who believed that Wall Street financial firms could always be trusted to preserve the system, and then launched into an attack on Rajan, saying he found "the basic, slightly Luddite premise of this paper to be largely misguided."

In fact, Rajan's analysis was dead on. But Summers never acknowledged that, either.

Here is Rajan's paper:

Has Financial Development Made the World Riskier?

The Wall Street Journal recently ranked more than 700 predictions made between 2009 and last year by 14 Fed officials on everything from growth to jobs to inflation. The economist who came out on top of the list? Janet Yellen."

I give Janet my vote. Or in Rocky Horror picture show fashion...Janet Damn 'it!

Handy comparison chart:

scott

http://www.cnbc.com/id/100988773

"A source from Team Obama told CNBC that Larry Summers will likely be named chairman of the Federal Reserve in a few weeks though he is "still being vetted" so it might take a little longer."

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"During Summers's presidency at Harvard, the University entered into a series totaling US$3.52 billion of interest rate swaps, financial derivatives that can be used for either hedging or speculation.[49] Summers approved the decision to enter into the swap contracts as president of the university and as a member of Harvard Corporation, which bears "the school's ultimate fiduciary responsibility."[50] By late 2008, those positions had lost approximately $1 billion in value, a setback which forced Harvard to borrow significant sums in distressed market conditions to meet margin calls on the swaps.[51] In the end Harvard paid $497.6 million in termination fees to investment banks and has agreed to pay another $425 million over 30–40 years.[50] The decision to enter into the swap positions has been attributed to Summers and has been termed a "massive interest-rate gamble" that ended badly.[52]"

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

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msf

From the original article:

" Summers [hasn't] ever owned up to his responsibility for deregulation in the 1990s, which led directly to the financial disaster."

Well, as Clinton (Darrell Hammond) explained: "It was the 90s. People did all kinds of ... crazy things."

Sven

Reply to @scott: Don't get it why he is even in the running as Cnext Fed Chairman...

Old_Joe

Reply to @Sven: You'd have to ask Mr. Obama that one. Beginning to wish I hadn't voted for him- but then there really wasn't much choice...

Sven

Reply to @Old_Joe: It would be refreshing to have someone else without so much baggage (mostly BAD!). He have plenty of critics everywhere with good reasons.
communities.washingtontimes.com/neighborhood/emea-watch/2013/aug/22/larry-summers-vs-washington-and-everyone-else/

Old_Joe

Reply to @Sven: I agree, Sven. She has no serious baggage that I'm aware of, a pretty darned good work record, and gets along with people. Unlike Summers. So he's really smart. So what? Nobody else is?

PatShuff

This one photo from 1998 includes everybody involved in the Fed chair decision

all have a straight line back to Clinton Treasury secretary Robert Rubin

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/08/21/this-one-photo-from-1998-includes-everybody-involved-in-the-fed-chair-decision/

America's Gilded Capital

Bill talks with journalist Mark Leibovich about his latest book, This Town, a city where money rules and status is determined by who you know and what they can do for you.

Wealthiest U.S. counties ring Washington D.C.

http://www.nbcnews.com/video/nightly-news/35825701#35825701

Zen koan--what is the sound of two wings of one nomenklatura flapping.
Answer--the standing ovation following an election nite victory speech.

http://www.foreignaffairs.com/articles/39271/john-c-campbell/nomenklatura-the-soviet-ruling-class

http://www.auburn.edu/~johnspm/gloss/oligarchy

bee

Reply to @PatShuff:

Thanks for these links.

catch22

As previously noted, oligarchy remains the name of the game. The insiders will maintain, regardless.

oligarchy


1. government by a small group of people
2. a state or organization so governed
3. a small body of individuals ruling such a state
4. chiefly ( US ) a small clique of private citizens who exert a strong influence on government

Ted

Reply to @catch22: I vote For Summers
Regards,
Ted

Ted

Reply to @catch22:

VintageFreak

I am not fed up. I'm just disenchanted Obama will appoint Summers as per CNBC. There are very few people I wouldn't vote for instead of Summers. Needless to say, my vote does not count.