Larry Summers

Here we go again. Once again the 'bipartisan' consensus in Washington, fueled by an intoxicating brew of conventional wisdom laced with campaign cash, has repealed some of those 'cumbersome regulations' that do nothing of value - nothing, that is, except prevent catastrophes. There will be celebrating on both sides of the aisle when the President signs this bill. more »

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Economic policy has faced grave challenges over the past two years, hamstrung by obstructionist Republicans in the U.S. Senate and Wall Street-friendly advisers in the Obama administration. With the Republican Party now in control of the House, it seems certain that any major action to create jobs will face tremendous obstacles. This is a global calamity. more »

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Larry Summers is out, and President Barack Obama now faces a critical decision. He can focus on policy, naming a replacement who wants to ease the economic strains on American households, or he can focus on politics, naming a candidate who appeases the corporate executive class and their backers in the Republican Party. The choice should be obvious. more »

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Now that Larry Summers is leaving, the President has a decision to make. His choice of a replacement will send a signal about the next two years of economic policy. That signal can restore consumer confidence and reinvigorate the electorate, or it can lead to even more discouragement and despair. Today unnamed Administration officials floated the idea of naming a corporate executive to the position. That's a trial balloon that should be punctured immediately.

The thirty-year-old law school graduate who asked the President yesterday, "Is the American dream over for me?" might interpret a choice like that as a 'yes' - unless he also happens to be a Fortune 500 CEO. Fortunately, there are much better candidates to be found elsewhere. more »

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Picture this: You're lying in the dark with a broken leg. Somebody comes by every couple of days to give you water and a little food, but you're wasting away. Suddenly a figure appears holding a candle. In the flickering light we see Tim Geithner's face. "Hey, there!" He says. "Do you realize that if we hadn't acted so promptly, both of your legs would be broken? Good news, huh? more »

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Things have been moving pretty quickly lately in the interlocking worlds of politics and financial reform. While there is a lot we don't know, here are three statements we can probably make with a high degree of certainty:

1. If the banks had been on the ballot yesterday voters in both parties would've voted them down.
2. A couple of determined Senators can make a difference.
3. If you want to rally the troops, don't use Larry Summers as your general. more »

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Last week, Larry Summers, the top economic adviser to President Barack Obama, gave a startlingly dishonest interview with PBS Newshour's Jeffrey Brown. more »

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Tomorrow President Obama will return to Cooper Union in New York, where he gave a speech on financial reform as a candidate two years ago. We're told that his advisors want him to "go big" in his speech, as he did when he addressed a joint session of Congress on health reform. But if he follows the same course he followed in health reform - "going big" on rhetoric and then "acting small" on policy - he's not just courting political blowback: He's running the risk of going down in history as this century's Herbert Hoover. more »

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Like an cat burglar, Goldman Sachs leaves its fingerprints in the most unusual places. The news of Goldman's role in the Greek financial crisis isn't just a black eye for Wall Street. It's also a diplomatic disaster for the United States, whose government has become so intertwined with Goldman that this incident could endanger our relationship with the European Union. more »

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