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Gasparino Reporting That Larry Summers May Soon Be Out

Tyler Durden's picture




 

Charlie Gasparino has just broken the story that Larry Summers may leave the Obama administration, presumably after the elections, based on the former DE Shaw man's disclosures to various Wall Street execs. This is not a very surprising move for Obama, who has bet his entire mid-term election campaign on his counter-Wall Street rhetoric, if not actions. Too bad that by this point, due to over a year of purposeful inactivity, the TBTF are Too Infinitely Big To Fail. With Summers a horrendous legacy of the administration's extensive ties to Wall Street, it was only a matter of time before he and Obama quietly parted ways. Following this development (and not a second too soon), everyone's attention shifts to Tim Geithner who has overstayed his welcome in the "public" scene for just about his entire tenure, and is way overdue in checking in to his reserved Goldman Sachs cubicle.

From FBN:

Larry Summers, who heads the White House’s National Economic Council, has been described as unhappy in his job, and is suggesting in conversations that he may leave the administration by the end of the year, according to Wall Street executives who deal directly with key members of President Obama’s economic team.

White House press secretary Robert Gibbs told FBN that Summers isn’t going anywhere, at least for now.

...

It’s unclear why Summers might be looking to leave the administration — though there’s been some speculation that he wanted to be appointed Federal Reserve Chairman. President Obama recently supported Ben Bernanke’s Congressional approval for a second term as Fed chief.

Wall Street executives who deal with Summers say they believe he isn’t being forced out. Others say his fate, like that of Treasury Secretary Tim Geithner, would likely depend on the outcome of the mid-term elections, particularly if the Republicans gain seats or take control of Congress and unemployment remains high.

 

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Fri, 03/26/2010 - 14:13 | 277241 rubearish10
rubearish10's picture

I want a divorce!

Fri, 03/26/2010 - 14:31 | 277273 Cognitive Dissonance
Cognitive Dissonance's picture

"White House press secretary Robert Gibbs told FBN that Summers isn’t going anywhere, at least for now."

Sounds like a hostage situation at the White House.

Fri, 03/26/2010 - 14:44 | 277297 faustian bargain
faustian bargain's picture

It sounds like there might be some confusion as to who is actually holding whom hostage.

Fri, 03/26/2010 - 15:36 | 277389 rubearish10
rubearish10's picture

Gibbs means Larry's not leaving until he goes first!

Fri, 03/26/2010 - 14:14 | 277243 SWRichmond
SWRichmond's picture

Let's see, who's available?  I'm sure ZHers can come up with a winner!

Fri, 03/26/2010 - 14:44 | 277296 pslater
pslater's picture

A: Arthur Laffer

B: Elizabeth Warren

C: Rep. Paul Ryan

Fri, 03/26/2010 - 15:17 | 277350 anony
anony's picture

I'm pretty sure Howdy Doody was a puppet.  Perfect.

Fri, 03/26/2010 - 16:03 | 277413 Roy Bush
Roy Bush's picture

Rubin, Laffer, Cohn, somebody of the cloth...this I am sure of!

Fri, 03/26/2010 - 16:21 | 277442 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

D: William K. Black

Fri, 03/26/2010 - 15:02 | 277327 Wynn
Wynn's picture

Bob Rubin seems the obvious choice, there is no Plan B you know

Fri, 03/26/2010 - 17:22 | 277539 Hulk
Hulk's picture

Phineas J. Whoopee, because he was  the greatest

Sat, 03/27/2010 - 07:19 | 277998 Mick C Pitlick
Mick C Pitlick's picture

Austrian school, deficit hawk. Right?

Or maybe Venezuelan school, confiscator. Better.

 

Fri, 03/26/2010 - 14:15 | 277245 BlackBeard
BlackBeard's picture

Good god.  Larry Summer is just about as evil as Dick Cheney.

Fri, 03/26/2010 - 14:36 | 277283 Orly
Orly's picture

Give the man his props!  Hell!

It's Darth Cheney!

Fri, 03/26/2010 - 14:16 | 277248 doublethink
doublethink's picture

 

That's one down...two to go.

 

Fri, 03/26/2010 - 14:17 | 277251 Brokenarrow
Brokenarrow's picture

WHo would be your choice to give a bitch slap?

 

Maria, Larry, Timmy, Big Bird, Kernan, Bennie-Boy???

 

As an added bonus, I would like to give Melissa Francis a full wind up bitch slap.

Fri, 03/26/2010 - 14:18 | 277253 ewmayer
ewmayer's picture

"And then you write, ‘Oh, they're just rearranging the deck chairs on the Titanic.’ First of all, that is a terrible metaphor. This administration is not sinking. This administration is soaring. If anything, they are rearranging the deck chairs on the Hindenburg!"

- 2006 April 29, Stephen Colbert, White House Correspondents’ Association Dinner, Washington, D.C

-----

Slightly tangential ... was watching an old episode of The Untouchables last weekend, and it suddenly occurred to me that Terrible Timmay G over at Treasuray looks kinda like he could be a snot-nosed weaselly little bastard son of Robert Stack. Anyone esle see a resemblance there?

Fri, 03/26/2010 - 14:34 | 277278 colonial
colonial's picture

Think Doctor Strangelove...

Fri, 03/26/2010 - 14:41 | 277289 Orly
Orly's picture

That's just boss, CD!

Fri, 03/26/2010 - 14:45 | 277303 faustian bargain
faustian bargain's picture

Well done!

Fri, 03/26/2010 - 15:31 | 277373 doublethink
doublethink's picture

 

Fucking Crooks

 

March 26 (Bloomberg) -- JPMorgan Chase & Co., Lehman Brothers Holdings Inc. and UBS AG were among more than a dozen Wall Street firms involved in a conspiracy to pay below-market interest rates to U.S. state and local governments on investments, according to documents filed in a U.S. Justice Department criminal antitrust case.

 

http://www.bloomberg.com/apps/news?pid=20601010&sid=anl9vTKXKYyk

 

Fri, 03/26/2010 - 15:55 | 277401 Cognitive Dissonance
Cognitive Dissonance's picture

"March 26 (Bloomberg) -- JPMorgan Chase & Co., Lehman Brothers Holdings Inc. and UBS AG were among more than a dozen Wall Street firms involved in a conspiracy to pay below-market interest rates to U.S. state and local governments on investments, according to documents filed in a U.S. Justice Department criminal antitrust case."

Well, it looks like Bloomberg has gone off the deep end and is now engaging in reckless "conspiracy theory". They should be immediately attacked as crazy tin foil hat wearing Looney Tunes that don't have anything better to do that to concoct crazy stories that boggle the mind. Upstanding respectable banking institutions such as these would never ever engage in behaviour such as this. Everyone should immediately commence with various Ad hominem attacks of the most vile nature until Bloomberg stops this disgusting "reporting" and returns to upbeat and responsible repeating of company news releases.

http://en.wikipedia.org/wiki/Ad_hominem

Fri, 03/26/2010 - 16:25 | 277449 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

practicing for the heist no doubt!

Fri, 03/26/2010 - 14:25 | 277261 carbonmutant
carbonmutant's picture

Pant, Pant, Pant....

Fri, 03/26/2010 - 14:25 | 277263 Hondo
Hondo's picture

Larry didn't hear the news he was napping.

Fri, 03/26/2010 - 14:31 | 277272 Leo Kolivakis
Leo Kolivakis's picture

Wake him up only if David Shaw calls...

 

Fri, 03/26/2010 - 16:29 | 277456 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Not only pathological, but narcoleptic.  I have heard he falls asleep in every meeting.  Must have some important things to dream about....like having Coca-"cola" and riding unicorns.  Economist?!?!?!  BAHAHAHAHA!!!!  Dude has the Midas touch!  Too bad everything he touches goes bankrupt.  Larry, you FAIL!

Fri, 03/26/2010 - 19:06 | 277651 Shameful
Shameful's picture

Well when you have a dizzying intellect like Larry Summers the banality of normal life forces one to sleep to escape.  Or maybe he was just up late watching tranny porn, it's a tough call.

Fri, 03/26/2010 - 14:27 | 277266 DavosSherman
DavosSherman's picture

Good f*cking riddance and may the door hit you in the @ss! F*cking moron.

Fri, 03/26/2010 - 14:36 | 277282 colonial
colonial's picture

worse...he's a very smart moron...maybe the smartest moron in the WH. 

Fri, 03/26/2010 - 14:56 | 277319 Vulgus Porkulus
Vulgus Porkulus's picture

Smarter than women who can't do math and science stuff.

Fri, 03/26/2010 - 15:10 | 277340 Votewithabullet
Votewithabullet's picture

The dumb ass who junked you doesnt know Summers actually said it.

Fri, 03/26/2010 - 16:38 | 277470 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"Women can't do math and science." -LAW RENCH SUMMERS

Fri, 03/26/2010 - 16:37 | 277467 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The debate rages; what does it mean to be smart?  Hawvawd degrees?  Wealth and power?  The ability to fall asleep at meetings, say bigoted stuff, and not get fired?

Sorry, but here I go....Larry Summers is dumb.  His actions do the talking.  Barry Sotero is dumb.  His actions do the talking.  BS Bernanke is dumb, his actions do the talking.  Tiimy Geithththner is dumb, etc, etc, etc.......

I do not care if BS writes macro and micro books, because they are hogswash.  Summers almost won a Nobel, well Paul Krugman is the biggest idiot I have heard!  Obama...the dude walked out on the PM of Isreal?!?!  You do not do that, not even if it was the PM of Turdistan!

Smart would mean making the tough choices, because they are the right choices.  These men want to be popular (with each other, never mind the "status quo").  That is all.

Fri, 03/26/2010 - 18:47 | 277632 colonial
colonial's picture

Look, I think LS is a dumb ars as well.  This is actually a big problem inside the Washington beltway.  There are many "smart" people.  But few with any real experience.  If you review the resumes of many political/government types, they had academic success throughout their entire lives.  They never got a "B" in anything.  They went to the right schools and traveled in the right circles.  They are lawyers who worked on the Hill, for an Administration, clerked for a federal Judge, then went to work for a law firm.  They end up having the kind of resume that makes them an attractive candidate, or a political appointee or a staffer somewhere.  Now we're into what many call the "revolving door," as these same people move in and out of government gaining experience and connections.  BUT...they rarely if ever have held a real job.  They never made a payroll.  Never had to deal with the policy, regulation and legislation they drafted.  Never had to deal with the other side of a case they won.  Over time they begin to believe the federal government knows best...better than anyone else...better than the opposition political party...better than the voters.  And the result is Hubris.  Hubris is the disease that is destroying public policy, the US Dollar and our federal system.  Yet we continually reward it.  How do we break the cycle? 

Fri, 03/26/2010 - 19:48 | 277693 Hulk
Hulk's picture

Violent uprising.

Violence solves everything

Fri, 03/26/2010 - 23:07 | 277875 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I say march on the street, but if Hulk wants to smash, I say let hulk smash!

Sat, 03/27/2010 - 11:46 | 278078 Hulk
Hulk's picture

LOL!

The marches are ignored. November midterms will be interesting, but I don't expect any meaningful change, lots of seat changes though, but our fail up system of government will continue until it can't

 

 

Fri, 03/26/2010 - 19:11 | 277655 Shameful
Shameful's picture

I most vehemently disagree!  They are geniuses.  Tell me have you looted, robbed, or pillaged 0.000001% as much as any of luminaries?  Have you caused chaos, pain, and death and not only gotten away with it but been lauded for it?  The world has spoken these men are geniuses!  They pillage us to this day!  They will end their days on an island in the sun free from toil while we eek out an existence in the muck, working with a gun at our back.  Sounds pretty smart to me.  Now totally morally bankrupt, but a psychopath can still be smart.

Fri, 03/26/2010 - 23:04 | 277872 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They live in hell, and their souls will rot in hell for eternity. In their heart of hearts, they KNOW they wronged the people. They know...

Fri, 03/26/2010 - 14:28 | 277268 Carl Marks
Carl Marks's picture

It looks like the NYT will be looking for another left wing loon to take over Paul Krugman's column.

Fri, 03/26/2010 - 17:34 | 277547 tip e. canoe
tip e. canoe's picture

i second that guess.   Barri-O on the crossover to the "left".

Fri, 03/26/2010 - 14:29 | 277270 The Merchant of...
The Merchant of Venice's picture

Heh.  Summers for Fed Chair.  Now that's funny.

Summers didn't even want to walk up the Hill for Treasury Secretary again.

Fri, 03/26/2010 - 14:35 | 277279 pragmatic hobo
pragmatic hobo's picture

dang ... this means Romer will take his spot ... can Obama surround himself with worse bunch of idiots?

Fri, 03/26/2010 - 14:47 | 277306 faustian bargain
faustian bargain's picture

Romer...noooooooo!!

Fri, 03/26/2010 - 14:54 | 277317 Cognitive Dissonance
Cognitive Dissonance's picture

Someone, anyone. Please wash my eyes out with soap.

Fri, 03/26/2010 - 16:47 | 277484 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Romer gives me the creepy crawlies.  UGH!  When she was on Meet the Press a few months ago, before Greenspan and Cramer said "Buy Buy Buy Now Now Now" on the same show, she smiled the whole time while giving grim news (of course, she was "upbeat" or whatever).  She said all of the bad news with a smile on her face the whole time.  She is a witch.  UGH!!!!  She is so gross!  So gross! 

Fri, 03/26/2010 - 16:53 | 277493 faustian bargain
faustian bargain's picture

In the movies she will be played by Kathy Bates.

Fri, 03/26/2010 - 14:57 | 277323 Vulgus Porkulus
Vulgus Porkulus's picture

She's already tapped to be the next Headmistress at Hogwarts.

Fri, 03/26/2010 - 14:37 | 277286 bugs_
bugs_'s picture

Hillary's campain begins.

Fri, 03/26/2010 - 14:50 | 277307 Cognitive Dissonance
Cognitive Dissonance's picture

How could I have forgotten about Hillary?

Fri, 03/26/2010 - 14:38 | 277287 10044
10044's picture

One sht down, too many crap to go...

Fri, 03/26/2010 - 14:39 | 277288 chomen
chomen's picture

Volcker's too old. Dimon's too Wall Street. Just for grins, I like Elizabeth Warren. Heart attacks at 85 Broad.

Fri, 03/26/2010 - 17:32 | 277544 JohnG
JohnG's picture

Warren is a bitch.  She literally told Pandit that the taxpayer would

"The United States government will bear any burden and pay any price to ensure that Citigroup does not fail."

http://abcnews.go.com/Business/citigroup-ceo-vikram-pandit-expresses-gra....

 

I pick Paul Ryan.

Fri, 03/26/2010 - 19:55 | 277698 Crime of the Century
Crime of the Century's picture

I haven't gone back through your comments to verify, but I could have sworn you are not a moron. I'm serious, unless I am mistaking you for someone else, your comment took me back. Please reread the article you linked for context, because you blew chunks on this one.

Quoth Warren:

"The sheer magnitude of Citigroup's operations, and the company's history of receiving extraordinary government support, has led this panel to an inescapable conclusion: Citigroup, along with a handful of other financial institutions, enjoys an implicit government guarantee," she said. "The United States government will bear any burden and pay any price to ensure that Citigroup does not fail."

She ain't sayin' that like it's a good thing...

Fri, 03/26/2010 - 20:04 | 277710 Miles Kendig
Miles Kendig's picture

Making ZH what it is!   Well done.

Fri, 03/26/2010 - 19:57 | 277699 Howard_Beale
Howard_Beale's picture

You have it totally wrong--she was saying what the Congressional Oversight Committee on TARP has realized, not what she believed. She is so not supportive of TBTF.

Fri, 03/26/2010 - 14:46 | 277304 Monday1929
Monday1929's picture

Where will Larry fail next? And how much of a raise will he get to do so?

Fri, 03/26/2010 - 14:46 | 277305 Ned Zeppelin
Ned Zeppelin's picture

Good riddance and don't let the door hit you in the ass on the way out. More cleansing of this rat's nest is sorely needed but he's a good start. 

One can only guess at the amount of hardship this man has caused and will continue to cause this country as a result of his disastrous views.

Fri, 03/26/2010 - 14:50 | 277308 Gimp
Gimp's picture

Good riddance, what a failure this a**hole has been in every adminstration. Typical civil service, the more you F*ck up the more they love you, dock him a days pay for napping on the job. 

Fri, 03/26/2010 - 14:51 | 277309 b_thunder
b_thunder's picture

Ka-Ching time, baby!   He's already gotten several millions after he deliverd "deregulation" and repeal of Glass-Steagal. Now, after he and Timmy saved Wall St and Greenwich, CT collective a$$es, it's time for a REAL payoff.

 

 

 

Fri, 03/26/2010 - 14:53 | 277315 SteveNYC
SteveNYC's picture

Yeah, I don't often get too personal, but....

 

fuck off, Larry.

Fri, 03/26/2010 - 15:07 | 277334 glenlloyd
glenlloyd's picture

I heard he's leaving to go to Jenny Craig.

Fri, 03/26/2010 - 15:12 | 277343 A Man without Q...
A Man without Qualities's picture

Poor Summers - the problem was we weren't smart enough to realize how brilliant he is.

It would be great to bring someone in who is untainted by Wall Street, who would understand that finance needs to operate as a service to industrial activity, rather than a parasite that sucks the host dry and then goes crying to the government that it needs a new host to feed upon.

 

Fri, 03/26/2010 - 15:28 | 277368 The Merchant of...
The Merchant of Venice's picture

If Finance is a utility, what factors determine what is productive and unproductive industrial activity?

Fri, 03/26/2010 - 18:56 | 277641 Orly
Orly's picture

Linear addition of value.

Fri, 03/26/2010 - 15:25 | 277363 Edna R. Rider
Edna R. Rider's picture

It's so sad.  Who will represent the interests of rich people and bankers?

Fri, 03/26/2010 - 15:42 | 277375 Miles Kendig
Miles Kendig's picture

Others say his fate, like that of Treasury Secretary Tim Geithner, would likely depend on the outcome of the mid-term elections, particularly if the Republicans gain seats or take control of Congress and unemployment remains high.

"The government is entering upon a new program of fiscal restraint" groundwork is getting done.   Bwaaahahaaa

Fri, 03/26/2010 - 15:32 | 277376 buzzsaw99
buzzsaw99's picture

They'll just replace him with another squid operative.

Fri, 03/26/2010 - 16:14 | 277430 ewmayer
ewmayer's picture

LOL - +1000000 for the photoshop of Machine Gun Timmay, CD!

Let's just hope he doesn't prove "untouchable" for his role in the NYFed/AIG conspiracy and the ongoing fraud against the U.S. taxpayers.

Sat, 03/27/2010 - 12:14 | 278094 Whats that smell
Whats that smell's picture

Should have pasted his head on a pic of Al Capone.

How about Larry and Paulson on a photo of Bonnie & Clyde?

Fri, 03/26/2010 - 16:48 | 277486 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I did not see it, so I will say it.

Rats fleeing the sinking (or is that stinking?) ship.

Fri, 03/26/2010 - 16:57 | 277497 InsanePonziClown
InsanePonziClown's picture

Obviously just a guess.  Obama took alot of old clintonites, and dem favs to the party with him.  He knew these were guys in the club, can't go wrong, RIGHT.

Obama has alot on his plate, yet, you can bet he's been learning alot and what he has learned is not good.  I'm sure alot of it is Obama doesn't talk to the guy anymore or take any of his advice.  Obama probably recognizes the problems he's got, and what can be done.  Having a rat on the inside isn't helping him in the least would be my guess, ie, what they are talking about in dee ovally office has been leaking to some street people.

Fri, 03/26/2010 - 17:04 | 277512 Gordon_Gekko
Gordon_Gekko's picture

The rats are leaving the sinking ship...

Fri, 03/26/2010 - 17:16 | 277534 faustian bargain
faustian bargain's picture

You can say that again.

Fri, 03/26/2010 - 17:31 | 277542 tip e. canoe
tip e. canoe's picture

well at least the white house m&m & diet coke budget will go down now.

Fri, 03/26/2010 - 17:32 | 277543 maneco
maneco's picture

Maybe "Gibson's Paradox" revelation by GATA's Bill Murphy at the CFTC hearings and Larry Summers' supposed creation of the "strong dollar" policy through the manipulation of the gold market has finally caught up with Mr Summers?

Fri, 03/26/2010 - 17:36 | 277551 Gordon_Gekko
Gordon_Gekko's picture

Perhaps Mr. Summers got caught red handed selling a tungsten bar?

Fri, 03/26/2010 - 20:00 | 277703 Crime of the Century
Crime of the Century's picture

Either way, shake the rumpled POS upside down before he goes, to get our bullion out of his pockets. He knows what it's worth...

Sat, 03/27/2010 - 14:37 | 278169 merehuman
merehuman's picture

now thats rich, someone getting caught. Haha

Fri, 03/26/2010 - 17:38 | 277554 mynhair
mynhair's picture

Cumon, y'all know it will be Andy Stern.  Why do you think he's always up there at the House?

Fri, 03/26/2010 - 19:59 | 277702 Hulk
Hulk's picture

I say we try an actor at this postion.It has worked so well at the presidency Lets give Hugh Laurie,House, a try and ask that he stay in character, that would be fun to watch..

Fri, 03/26/2010 - 17:55 | 277565 imapopulistnow
imapopulistnow's picture

He bought the corrupt industry an extra year of bonuses.  They should reward him handsomely for his efforts. (But they won't because he will no longer be of any use to them - damaged goods)

Fri, 03/26/2010 - 18:08 | 277586 girl money
girl money's picture

GO GASPO!!!  Another scoop!

CNBS site has locked up as they put finishing touches on WH response that these rumors are ridiculous.

Fri, 03/26/2010 - 18:54 | 277638 Orly
Orly's picture

Hey, now.  That reminds me...

Bloomberg is the mayor of New York.  You know, where that whole 9/11 thing went down.

While I know he is supposed to be at arm's length while he is the mayor, I just don't see any way that the words JPM and "conspiracy" were uttered in the same sentence without his blessing and approval.

Maybe Michael is willing to see where this leads?  Maybe he is in cahoots and is throwing the old red herring into the mix?  Either way, the simple fact that his information service sanctioned this report is definitely a step in the right direction.

Fri, 03/26/2010 - 20:18 | 277725 Howard_Beale
Howard_Beale's picture

Knowing personally how BB works on the inside, Mike is not Rupert Murdoch and lets his managing editors report the news.

Fri, 03/26/2010 - 19:17 | 277660 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Why wait? Let's have a 2-for-1 sale with Larry and Timmay getting shown the door. Replacements? William K. Black and Brooksley Born. We can send a couple of boxes of Depends over to 85 Broad.

Fri, 03/26/2010 - 23:12 | 277880 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Barry is going to need some depends too.

Fri, 03/26/2010 - 19:25 | 277674 jmc8888
jmc8888's picture

He's getting out while the money printer still works.  (that is printing money, not the effects of which)

Tue, 04/13/2010 - 06:07 | 297758 mark456
mark456's picture

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Sat, 05/08/2010 - 20:43 | 338520 jp
jp's picture

What good thing can I say about the man. I think he makes a great deal of money speaking about economics.

As I recall Harvard put him in charge and he lost a great deal of money but it seems they still like him. How many people do you know, that might put you in charge of their money and still like you after recording an almost $1B hit...

see...

From here...

http://en.wikipedia.org/wiki/Lawrence_Summers

Losses on financial derivatives. Sorry. Looked that over and it was only $925M.

My mistake. Amazing how nice those Harvard People can be.

Do NOT follow this link or you will be banned from the site!