One Person's Case For Chairman Larry Summers

One Person's Case For Chairman Larry Summers

From zerohedge.com

With the case for the next Fed chairman having devolved to the most ridiculous of decision trees, such as Nancy Pelosi's "it would be great to have a woman", because apparently gender diversity trumps everything in the eyes of the California democrat, the choice of Bernanke's successor is now more nebulous than ever. It has certainly not been aided by the periodic floating of the Larry Summers trial balloon, especially as originating from the Fed's WSJ mouthpiece who one week presents Summers as the favorite and the next skewers his chances. However, one person for whom the Summers vote is essentially a done deal ... (full story)

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Comment #1
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Jul 30, 2013 8:34am Jul 30, 2013 8:34am

Puritan
| Joined Mar 2011 | Status: Member | 72 Comments

Oh joy, another Keynesian spend until everyone is broke. What happened to rationality and logic? They, like common sense, are cognitive constructs of a bygone era.

Comment #2
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Jul 30, 2013 8:51am Jul 30, 2013 8:51am

Spreadbetter
| Membership Revoked | Joined Feb 2012 | 3235 Comments

This is a common misconception; classic Keynesian economics never supported a profligate spend at this end of the broken cycle. In its true form it encourages storing reserves in times of plenty and then creating stimulus for the likes of infrastructure proejects to keep employment high when the 'boom' cycle ended. Keynes would be doing breakdancing cartwheels in his grave at the monstrosity Bernanke et all have created.

Quoting Puritan

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Oh joy, another Keynesian spend until everyone is broke. What happened to rationality and logic? They, like common sense, are cognitive constructs of a bygone era.

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"The meek shall inherit the earth.." Yeah right, good luck with that shit..

Comment #3
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Jul 30, 2013 10:58am Jul 30, 2013 10:58am

Puritan
| Joined Mar 2011 | Status: Member | 72 Comments

I am aware of the misconception. That said, one has to think of the profound statement I.E. Thomas said,"Whether some is real or not is inconsequential, if it is perceived as real it is real in its consequences". What is now called Keynesian economics is spend, spend, spend. I heard a speech Dr. Summers gave in which he quote in a very favourable light John Keynes and given his track record it is safe to assume lots more money will be flooding the system.

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Posted: Jul 30, 2013 7:10am
Submitted by:
Newsstand

Category: Fundamental Analysis

Comments: 3 / Views: 1,325