US Sen. Jeff Merkley (D-OR) Correct Thinking on Summers for Fed Chair

This is the point:

In 1998 Summers, then-Fed Chairman Alan Greenspan and Treasury Secretary Robert Rubin blocked efforts by Brooksley Born, then-chairman of the Commodity Futures Trading Commission, to regulate the derivatives market. It later expanded to include the toxic instruments that led to the 2008 financial market crisis.

Glass-Steagall Act

Summers also sought repeal of the Glass-Steagall Act, the Depression-era law separating commercial and investment banking.

"I start from a position of being extraordinarily skeptical that his background is appropriate for the role of the head of the Fed," Oregon Senator Jeff Merkley, a Democrat on the Banking Committee who signed the letter, said yesterday in an interview.

"If you nominate someone who is a life-committed deregulator to be in a regulatory position and if you believe regulation is necessary to prevent fraud, abuse, manipulation and so forth, then there's a lot of questions to be asked: Why is this person appropriate?" Merkley said.

Obama Calls Summers Criticism Unfair, House Lawmakers Say - SFGate

Look, there's no doubt that Larry Summers evolved somewhat and quickly on account of the Great Recession. He knew the Keynesian school, etc., even before he was advocating for deregulation, but that doesn't make him even a good candidate at this point because there are hundreds of people better suited to the position. There are hundreds who understand Modern Money Theory (MMT) far beyond what Summers knows.

If the US is going to remain a mixed economy (socialism and capitalism) and get out of the economic doldrums ASAP, then MMT is the way to go. Find the very best MMT economist who is also the best administrator. Larry Summers is not that person, not even close.

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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