Larry Summers At Federal Reserve By 2010?

US News and World Report:

He hasn't even taken office yet and the rumors about President-elect's musical chairs are starting. The latest: That Obama won't reappoint Federal Reserve Chief Ben Bernanke in 2010 and will instead put his economic czar Larry Summers in the powerful post. Financial industry sources close to the Obama campaign say that it's more about the new prez wanting to reward Summers for his efforts so far than any punishment of Bernanke, who gets applause in Democratic circles for moving aggressively to reverse the credit crunch and recession.

Summers should be a natural for the post, having served as a treasury secretary under former President Clinton and also as president of Harvard University. "It's a big rumor in the financial world," says a source. Others, however, suggest that the transition team is focused solely on fielding the new president's team, not already looking at who to sub in two years from now. Should the rumor come true, it would also be good news for Jason Furman. He will be Summers's No. 2 on the National Economic Council.

Read the whole story: US News and World Report

Comments

[PhilipTaylor]

What would Summers do Differently from Bernake?

Would he use Trickle Down Funding of the Banks?

Would he help the homeowners and the Main Street Credit Crunch?

I want to believe he would be more directed at the underlying problems rather than address the superficial symptoms like Bernake is by feeding Trillions to the Corrupt Banksters!

[speeddeeps]

Actually if you read his Financial Times column he has been predicting this since 2006

[olephart]

He supported the repeal of Glass-Steagall and the deregulation of derivatives trading in 1998. Yep, he’s the man for the job. He’ll fit right in. Just keep those bailouts and handouts rolling. No need to monitor the markets or the Wall Street firms it’s just like Greenspan said the markets will regulate themselves. Yep, change is just a six letter slogan for a political campaign not a real policy to make a difference. Yep.

[roybattyjunior]

I agree with you. Summers? Change We Can Believe In? How about More of The Same? Summers is a Milton Friedman worshipper. His whole MO is privatization, deregulation, and slashing of public spending. He will continue the same toxic polices that let the markets run out of control. Barry, Barry, Barry...wh­o's twisting your arm into these types of choices?

[nogimmicks]

Well said. Unfortunately, this appointment is consistent with everything else Obama (or Rahm, Obama's Dick Cheney) is doing.

[gerontion72]

They're all Bilderberg scum. What difference does it make?

[satyriasis]

Good. We need a Democrat at the Fed. The Bush years have taught us how dangerous it is for a Republican hack to be in control of US the monetary and banking system.