Larry Summers withdraws nomination for next Fed chair (BREAKING)

Larry Summers has withdrawn his name for consideration as the next Federal Reserve chair.

Hallelujah.

Summers’ nomination had bewildered many Democrats.  And Summers apparently finally realized that if he went through with the nomination process, it was going to be acrimonious, and risk a possible Democratic filibuster of the President’s own nominee.

Larry Summers (courtesy of LHSummers)

Larry Summers (courtesy of LHSummers)

Former Nobel economist Joe Stiglitz, among others, has been pushing Janet Yellen instead of Summers.  Stiglitz is – how shall I put this? – not Larry Summers’ greatest fan. Here’s Stiglitz in a recent op ed in the NYT:

Regulatory failures have been at the center of previous crises as well. At Treasury in the 1990s, Mr. Summers encouraged countries to quickly liberalize their capital markets, to allow capital to flow in and out without restrictions — indeed insisted that they do so — against the advice of the White House Council of Economic Advisers (which I led from 1995 to 1997), and this more than anything else led to the Asian financial crisis. Few policies or actions have greater culpability for that Asian crisis and the global financial crisis of 2008 than the deregulatory policies that Mr. Summers advocated.

Supporters of Mr. Summers argue that he is exceptionally qualified to manage crises — and that, while we hope that there won’t be a crisis in the next four years, prudence requires someone who excels at those critical moments. To be fair, Mr. Summers has been involved in several crises. What matters, however, is not just “being there” during a crisis, but showing good judgment in its management. Even more important is a commitment to taking actions to make another crisis less likely — in sharp contrast to measures that almost ensure the inevitability of another one.

Mr. Summers’s conduct and judgment in the crises was as flawed as his lack of commitment in that regard.

Good riddance.


Follow me on Twitter: @aravosis | @americablog | @americabloggay | Facebook | Instagram | Google+ | LinkedIn. John Aravosis is the Executive Editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown; and has worked in the US Senate, World Bank, Children's Defense Fund, the United Nations Development Programme, and as a stringer for the Economist. He is a frequent TV pundit, having appeared on the O'Reilly Factor, Hardball, World News Tonight, Nightline, AM Joy & Reliable Sources, among others. John lives in Washington, DC. .

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31 Responses to “Larry Summers withdraws nomination for next Fed chair (BREAKING)”

  1. RyansTake says:

    “why was Obama so gung-ho?”

    because Timothy Geithner was even less likely to get through.

  2. RyansTake says:

    This is amazing news — here’s a live clip of spectators as it went down.

    http://www.youtube.com/watch?v=PHQLQ1Rc_Js

    (Warning: Snark.)

  3. zorbear says:

    I generally find all people weird, but I have to admit, some are weirder than others…
    ;-)

  4. karmanot says:

    It is logical Zorby, that complete losers are if fact successful in that. Weird huh?

  5. karmanot says:

    It’s all Obozo’s 11ty dimensional gaming again.

  6. karmanot says:

    Yes there is…..by putting said turd in a paper bag and setting it on fire on the doorstep of America he will get major attention by appointing a lesser rat of the same tendency.

  7. karmanot says:

    “What has Summers promised Obama”—easy—a Clintonian future of money gathering.

  8. basenjilover says:

    So tell me why Obama was so gung-ho in nominating Summers? What has Summers promised Obama (like Obama is going to tell us) if he gets the post?

  9. zorbear says:

    “To be fair, Mr. Summers has been involved in several crises. ”
    You know, if your main talent is causing crises, it’s pretty much a given that you’re going to develop a lot of experience with them…

  10. Bill_Perdue says:

    No biggie. There’s always another lap dog of the banks standing in line.

  11. HeartlandLiberal says:

    I could live with enjoying this sort of Schadenfreude in news reports every day. Just warms my heart.

  12. lynchie says:

    No he is going to stamp his feet and pout

  13. Roman Berry says:

    Best news all day. All week. All month. Maybe all year. Now, what fake reason for screwing Janet Yellin out of the job will the White House come up with next?

  14. AnitaMann says:

    Any chance of Obama learning a lesson from floating this turd?

  15. EdA says:

    Well, at over-long last, Larry Summers did something that was in the public interest, rather than in the interest of his fellow banksters.

    It’s too bad that inexplicably Obama chose to throw away more of his diminishing support among Democrats by wasting time promoting this waste of space.

  16. Monoceros Forth says:

    Why is he still in the public eye at all? Talk about a guy who’s failed upward.

  17. Indigo says:

    What? Does Barry understand the issue involved? I bet not.

  18. nicho says:

    Bingo.

  19. nicho says:

    This was just a Rovian-style distraction. The trick is to ferret out the things that Barry O’Bomber snuck in under the radar while everyone on the left was fretting about Summers.

  20. Reasor says:

    The President’s lavish retirement isn’t going to pay for itself.

  21. tamarz says:

    I’m thinking there’s more than a bit of sexism in Obama’s preference of Summers to Yellen.

  22. emjayay says:

    I think Barack might suffer from daddy issues and rich people awe.

  23. Houndentenor says:

    Why was he even on the list?

  24. BeccaM says:

    The American people have been screwed since the day Alan Greenspan was put in charge of the Fed and the mission to push low inflation AND low unemployment was amended to remove the latter.

  25. BeccaM says:

    Glad to hear it. But yeah — he hadn’t actually been nominated. His was just the name at the top of the list.

    But yeah — having him be the Fed chair would be the ultimate in failing upward.The man is an anti-regulation fiend in an era desperately in need of tighter financial regulation.

  26. cole3244 says:

    obama knew summers would be an unpopular choice but now he can slip thru an even less worthy nominee and not have to worry about any opposition.

  27. Naja pallida says:

    Good. Now, make him go away. His voodoo economics and notions that the market can do no wrong are a good part of the reason why we are where we are, and why our politicians have no power (or interest) to regulate the market whatsoever.

    Though, I have little faith that Obama’s actual nominee won’t be a Wall Street stooge anyway. I’m sure anyone from the boards of Chase or Bank of America would be happy to take a side gig as a “regulator” for a few years.

  28. nobonesl says:

    OMG. If the next Fed Chair isn’t a total slave to Wall Street, America will be Dooooomed!

  29. Ninong says:

    Obama didn’t nominate him. Thankfully!

    This was just a preemptive withdrawal on his name from consideration to save face. It would have been a very controversial nomination.

  30. AdmNaismith says:

    Yellen is only better by degrees, but damned if Summers isn’t directly part of the problem right now.

  31. Max_1 says:

    Q U E S T I O N:
    Why did Obama nominate him in the first place?

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