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David Bromwich

David Bromwich

Posted: April 4, 2009 06:02 PM

Economic Adviser to the Aristocracy


The lately published list of the honorariums received by Lawrence Summers for
lectures delivered in 2008--at firms like J.P. Morgan, McKinsey and Company,
Goldman Sachs (twice), Citigroup (twice), Lehman Brothers (twice), American
Express, Pricewaterhouse Coopers, Skagen Funds (twice)--shows the practical
meaning of an aristocratic class. The amounts received by Summers from these
banks and brokerage houses and consulting firms covered a range from $59,400
per lecture (Skagen) to $135,000 (McKinsey). Other outfits paid still more.


Summers also received a salary of $5.2 million in 2008 from the hedge
fund D.E.
Shaw after having brought substantial pressure to institute the
radical policy
of deregulation that affords an unparalleled species of financial
protection to
hedge funds.


The point about such a private counselor who becomes a public servant is not that he is corrupt. He need not be. Rather, he is predictable within the world
he knows and believes in, which is the world that honors him. He does not have
to be told what to do. When he thinks of the American family, these banks and
investment groups, and the too-big-to-fail insurance colossus, are in fact his
extended family. They are the people he talks to and jokes with and eats with,
the people he thinks of in his spare time. They are the people he knows.


One sees in the recent career of Summers--and not least, in his ascent to the
position of economic adviser to President Obama--how subtle, consistent, and
pervasive are the means by which an aristocracy perpetuates itself. How it doles
out its rewards to maintain its power. How it buys the talents and shapes the
careers it needs, so that even a general crisis brings only a second layer of
bribed servants, and the medicine is administered by doctors whose judgment is
bought and paid for. One sees, too, what drove the rage against such a
class in
earlier times--the feeling that its power is a monstrous imposition; the fear
that no cry or protest will ever penetrate from outside the closed circle.

The lately published list of the honorariums received by Lawrence Summers for lectures delivered in 2008--at firms like J.P. Morgan, McKinsey and Company, Goldman Sachs (twice), Citigroup (twice), Leh...
The lately published list of the honorariums received by Lawrence Summers for lectures delivered in 2008--at firms like J.P. Morgan, McKinsey and Company, Goldman Sachs (twice), Citigroup (twice), Leh...
 
 
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09:57 PM on 04/06/2009
Since Pres. Obama, to date, is continuing the Bush Bottomless Bailout--and basking in the narcissistic glory accorded him in the corporate media--while his public support steadily slips--I have a question for you, Dr. Bromwich, as a prof of literature.

Is Obama--apparently now wedded to the Bush Bank Bailout--not setting himself up to be a new Hamlet? Or merely Bush's third term--or both??

If Summers should Fall, can Spring be far behind?
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flossophy
the unfamous anti-establishment classical liberal
06:31 PM on 04/06/2009
Bromwich... sever the unh0ly marriage between government and industry...

You cannot get there with Pr0gressivism... time to become a classical liberal.

Make the government a "referee" not a player...

this concept is so simple... why do you think the leftists don't like it?
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Tim303
05:11 PM on 04/06/2009
Perfect, brief, powerful--thank you.
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knosiswar
Major General Smedley Butler - get to know him
01:21 PM on 04/06/2009
I think of the Rhodes Scholarships funded by Cecil Rhodes who established the Round Table to see to the global domination ot the British Empire, Skull and Bones and the Wolf Key Society originated by a Bush, the London and Chicago Schools of Economics. Also the Heritage foundation, Brookings Institute, the long list of tax-exempt policy institutions that write the legislation to keep the rich Rich and the poor POOR.
01:00 PM on 04/06/2009
Professor of Literature????????
outnow
Ban the bomb
12:31 PM on 04/06/2009
Larry Summers is trying to re-invent the same system. The new system will be slightly more regulated, more benevolent-appearing but with the same fundamentals.

There has been an increase or consolidation of wealth and class power in America since the 1970's. The evidence is the increasing inequality in wealth not only in the US but throughout the world. The bailout and the stimulus are designed to keep those assets intact while the rest of us pay.

By the policies of the current administration favoring the banks and the bankers, while sticking it to the people, the profits have been privatized while the losses are socialized. Americans are intentionally being confused between the concepts of "individual liberty" and "freedom of the markets." Free and unregualated international flows of finance capaital have nothing to do with "freedom." And there is no moral hazard for these insiders - the Oligarchy. Command over commodities and natural resources by this financial oligarchy based on these principles and absolute control over labor resources requires consolidation of the financial sector between 4 major banks. Each pre-selected or ordained financial institutions by "Summers, et al. to survive the "stress tests," i.e., continuing the deception over negative balance sheets - those toxic assets aren't that toxic!

Summers' policies are "neoliberal" and the effect is to consolidate class power by an Oligarchy both in the US and internationally.
08:43 AM on 04/06/2009
Before someone should be allowed to complain they should first tell us the worst thing they've every done. Then, if they would want the world (and their parents) to know it, cast that first stone as hard as you can. Second you should tell us the 2 things you did today to put the country back on the path... it can be something small... donating a shirt... few cans of food... giving comfort to someone who is afraid... then heave that second stone away. And Yale vs Harvard... always skeptical....
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CherokeeGirl
one pissed off Indian.
05:12 PM on 04/06/2009
we complain because what this man does affects all of us.
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realpolitic
When in Rome.......
06:23 AM on 04/06/2009
Once one reaches a certain position in life as these men in high government do, one no longer has to work for a living. One is simply appointed to boards and gives lectures for enormous sums and breezes around to the world's best golf courses. It is an interesting prescription, become a part of the ruling class then enjoy the benefits that accumulate. Of course, if he did not speak out repeatedly for deregulation and look out for the best interests of Wall Street then he might have been dismissed by those same interests. It is the same for journalists- most never buck the establishment.
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HUFFPOST COMMUNITY MODERATOR
henrywolff
11:41 PM on 04/05/2009
Classic. Nice hire Barry.
11:32 PM on 04/05/2009
As long as most individuals see reality split into "good guys and bad guys" (Aristocracy vs everyone else) rather than just one group of human beings with different perspectives, then our institutions will reflect this also.

Most people are greedy, judgmental, not completely honest, easily embarrassed, etc. So obviously then, we will see these qualities in the implementation of power by our institutions.

The military, the banks, religious groups, politicians, etc, will exercise power as individuals exercise theirs.

Our government and our institutions will be, and have to be, like us. When we evolve beyond our negative and selfish thinking and doing, so will they.

The best thing anyone can do at this point is stop seeing anything in any other terms than a mere reflection of a manifestation of our inner selves. Bickering and fighting about our judgments of each other is counter productive. However, the ironic thing about all this is, that we can do nothing to quicken our evolution because change "precedes" our awareness. The thoughts and feelings we have, which determine our behaviors, always manifest in our minds first, before we are affected by them. Try seeing what your next thought will be before it comes to you, or try knowing what your next feeling is going to be, before you feel it. Impossible!

This is why the future is unknowable, and we are mere observers, not doers. If we survive, hopefully it will not continue to be simply as slaves to our egos.
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Robert Cantor
I am a human being descended from a small group of
12:35 AM on 04/06/2009
The future is Completely predictable by a valid and accurate analysis of the past.
01:37 AM on 04/06/2009
If you are not kidding, then you obviously must be the richest and most well known person in the world.
08:35 AM on 04/06/2009
Brentb is absolutely full of it...and so are YOU.
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realpolitic
When in Rome.......
06:32 AM on 04/06/2009
The writer of the article is not talking about perceptions, but how when one reaches a certain level he is richly rewarded. Does Summers really deserve $100,000 dollars per lecture? Is what he is going to say that unpredictable and insightful? Should he make millions a s a hedge fund manager only to return to government? After all, he is not a stock picker and I don't remember him warning about the subprime credit crisis before the bubble burst. In fact, Summers recommended deregulatory policies which feed the crisis!
11:20 PM on 04/05/2009
Its spelled haute bourgeois with an e. And no its not haute bourgeois we have had that ever since the advent of capitalism these many hundreds of years. This is what was invented in the latter part of the 20 th century. This is money, that is secured by a closed system, which isnt subject to failure. It maintains itself throught the looting of national treasuries. The risk of financial speculation is eliminated, by losses bailed out by public taxpayergovernment monies. They wiped out Argentina, and Russia this way, they just turned it on us now. International capital is secured in the hands of a small minority which has no national bounderies or national interests. This is the new slavery. It is global. It will conquor the world and enslave the majority of the worlds population for the benefit of a tiny minority. This is in effect the Global New World Order that the right wing nuts have been warning us about for a long time. They were right about it in this respect.
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Chubbster
Partisanship is a mental illness
11:18 PM on 04/05/2009
David, where would you be without the aristocracy? Yale has been funded by the aristocracy's generosity for over a century. What's the matter with the best of the best anyway other than the arousal of the destructive emotion of envy in the plebes?
08:38 AM on 04/06/2009
Hmmm...maybe the fact that the term "best of the best" in the context that you speak of has deteriorated into a BS legacy endowment that has absolutely nothing to do with talent, intelligence or skill?

Just guessing, but that seems about right to me...
10:32 PM on 04/05/2009
More and more I believe that there is going to be a very ugly ending to all of this.

People on both sides of the blue red divide are now realizing the artificial distinctions and that they have been played against each other by the kleptocrats.

No amount of soaring rhetoric is going to fix this; only transparent honest actions.

Whether it's gays, country folk, auto workers, war, or wall street; this administration already has a consistent record of throwing the little people under the bus.
11:11 PM on 04/05/2009
I agree with your post wholeheartedly. While the Obama administration uses smoke and mirrors to get the American people to use all their energy railing against executive bonuses, his own people are robbing us blind. I could never figure out why Tim Geitner was the "only one who can get us out of this mess", but now that I read more I know that was just a ploy to get him into the office so that the stealing and lying and total lack of transparency could continue. I'm going to a tea party on the 15th, don't know if it'll do any good, but I have to do something besides writing to my Congressmen, as they aren't paying any attention.
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naschkatze
A free man creates himself.
09:33 PM on 04/05/2009
I can see why you characterize Larry Summers as aristocracy because he is highly educated and was a professor like yourself. But I suppose my definition of aristocracy is tainted by reading too many books about the young English officers who died in the First World War. It literally means "the best", and I don't think that class is motivated by money alone. American education even in the most highly rated universities does not instill that ethos in its graduates, and I would characterize Summers as having attained the moneyed class, but he is not "the best". If he were, he would be putting the country above his own interests.
09:30 PM on 04/05/2009
Aristocracy?
Professor, do you mean that Summers is a part of "aristokratia," or "the rule of the best"?

The apt definition is probably PLUTOCRACY or rule by the wealthy, or power provided by wealth;

Or, maybe an OLIGARCHY or a form of government where power effectively rests with a small elite segment of society distinguished by royalty, wealth, family, military influence or religious hegemony.

But, the general public will most likely describe this class of revolving door servants as part of a KLEPTOCRACY or a government that extends the personal wealth and political power of government officials and the ruling class (collectively, kleptocrats) at the expense of the population, sometimes without even the pretense of honest service.

La propriété, c'est le vol! or in it's vulgar English, Property is theft.
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naschkatze
A free man creates himself.
10:43 PM on 04/05/2009
Maybe Summers is grand bourgeois?
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naschkatze
A free man creates himself.
10:44 PM on 04/05/2009
Or is it haut bourgeois? I forget.