Wednesday, September 22, 2010

Larry Summers - Who Missed Out on Fed Chief Post - Heading Back to Harvard

Having failed to secure his ultimate dream job as the 2nd most powerful man on Earth with the reconfirmation of Bernanke earlier this year, the rumors of Larry Summers returning back to his job in academia have now been confirmed.  [Apr 7, 2010: Could Larry Summers be Leaving?]  Of course he only had a 2 year window to keep his tenure at Harvard, so it was Fed Chief or bust for Larry.  Probably the happiest man in the room is Paul Volcker, who it appears Summers had made a personal mission to gag with duct tape. [Jun 26, 2009: Bloomberg - Paul Volcker Marginalized; Major Push Back on Curbing Excess. Our Life of Financial Oligarchy Does not Change]   Can't say I will miss the guy who helped orchestrate the destruction of the U.S. financial economy via being one of the chief architects of the repeal of Glass Steagall, (because the "free market" will regulate the banks) but hopefully he will continue to post comments on the blog.  I also hope he taught TurboTaxTim how the quant algos can be manipulated by precise SPY futures buying, as Larry surely learned at his pit stop at quant shop DE Shaw  [Apr 6, 2009: Larry Summers - No Conflict of Interest; He Pinkie Swears]

The brave move here would be to install Volcker in the post, but since Volcker cares about the country rather than the special monied interests, it most certainly will be a former CEO so Wall Street is happy.  Because as we all know by now, every decision in America must center about making the "markets happy".  In the meantime, the former New York Fed head (who was asleep at the wheel as our financial oligarchs in New York went on an orgy of excess the past decade) and current darling of Wall Street ("we tell him to jump, he asks how high?") TurboTax Tim now has all of Obama's ear to himself.   [Oct 15, 2009: All of Tim Geithner's (Wall Street) Men]  BFF!

Via Bloomberg:

  • White House officials expect Lawrence Summers to leave his job as the president’s National Economic Council director after November’s congressional elections, according to three people familiar with the matter.  His departure would leave Treasury Secretary Timothy Geithner as the only member of President Barack Obama’s original top-tier economic team.
  • Since the end of July, Peter Orszag, director of the Office of Management and Budget, andChristina Romer, the head of the Council of Economic Advisers, left the administration.
  • Summers will return to Harvard University, where he became the youngest tenured professor at 28 and later served as president, by the end of the year,

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