Larry Summers: Use The Rising Market As An Indicator Of Our Success, But Ignore It When It Is Going Down Please
Larry is asked on his view of the ever escalating war with Wall Street
and its implications: "If you do the right things for the fundamentals
and for soundness, over time markets tend to work out. And if you let
your policies be guided by day to day market movements, that's what
tends to be the problem. If you ask yourself 'how did we get here?' one
central part of how we got there, one central part was all those people
who believed all those prices, believed all those credit spreads, who
let day to day market levels be their guide through 2006 through the early part of 2007." Wow, Larry - maybe Obama's speechwriter should tone down the constant reference to the "Dow Jones" in that case to highlight just what a great job the increasingly clueless president is doing.
As the administration's every TV appearance is predicated first and foremost by indicating just how high the market has "risen" in the past x minutes, hours, days, and months, Larry's statement that it is perfectly ok to use the market response when things are going ok, but to ignore it when its says the administration has fucked up beyond compare, is the supreme epitome of hypocrisy. Then again, with his imminent forced departure, we are confident he has other things to worry about.
Some more disclosure: it turns out the ban "memo" had been written just "after the first of the year, long before the events in Massachusetts." Presumably it was also written also long-after Geithner claimed in Congressional testimony, that prop trading was perfectly normal.
Also Larry Summers now apparently has a vendetta with Larry Kudlow. When asked if the economic team for President Obama is in disarray, Summers replies: "I guess I would suggest that his sources are probably about as good as his sources who were saying that given the imminent sale of NBC to Comcast, there is vast disarray in CNBC."
Well, uh, so it is true then?