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Larry Summers Does It Again

Tyler Durden's picture





 

Back in October 2011, our inaugural "Quote of the Week" went to that destroyer of pretty much everything, deep fried twinkies and value most certainly included, Larry Summers:

"The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending." Larry Summers, source

It is only fitting that the sequel to what to a large majority of people is the dumbest quote in history, will once again come from Larry Summers:

"Rather than focusing on lowering already epically low rates, governments that enjoy such low borrowing costs can improve their creditworthiness by borrowing more not less.Larry Summers, source.

3..... 2..... 1..... and #Ref!


 


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Sun, 06/03/2012 - 20:51 | Link to Comment Budd aka Sidewinder
Budd aka Sidewinder's picture

Give me a plumber that's had to manage his own business over highly educated Ivy Leaguers to run the country any day.

IT'S NOT THAT FUCKING HARD

Sun, 06/03/2012 - 20:51 | Link to Comment alfred b.
alfred b.'s picture

 

   ...but on the other hand, it's because of guys like larry, bahmy and timmy that I'm all in in pm's!

   like the man said:  Got Gold??

 

 

Sun, 06/03/2012 - 20:54 | Link to Comment CURWAR2012
CURWAR2012's picture

He has sleep apnea: hypoxemia fucks with the brain over time. I bet his baseline room air oxygen level is consistent with anaerobic life form

Sun, 06/03/2012 - 20:54 | Link to Comment Cabreado
Cabreado's picture

Not a time to forget the delivery vehicle...

Cheers to the Financial Times...

for aiding and abetting a (particularly stupid) financial terrorist.

 

Sun, 06/03/2012 - 20:56 | Link to Comment lolmao500
lolmao500's picture

Obamacare : total scam... (duh)

http://www.bloomberg.com/news/2012-05-31/drugmakers-vowed-to-campaign-fo...

Drugmakers led by Pfizer (PFE) Inc. agreed to run a “very significant public campaign” bankrolling political support for the 2010 health-care law, including TV ads, while the Obama administration promised to block provisions opposed by drugmakers, documents released by Republicans show.

The internal memos and e-mails for the first time unveil  the industry's plan to finance positive TV ads and supportive groups, along with providing $80 billion in discounts and taxes  that were included in the law. The administration has previously  denied the existence of a deal involving political support.

The documents were released today by Republicans on the House Energy and Commerce Committee. They identify price controls under Medicare and drug importation as the key industry concerns, and show that former Pfizer Chief Executive Officer Jeffrey Kindler and his top aides were involved in drawing it up  and getting support from other company executives.

Sun, 06/03/2012 - 20:56 | Link to Comment ziggy59
ziggy59's picture

The Endless Summers

Sun, 06/03/2012 - 20:58 | Link to Comment DavosSherman
DavosSherman's picture

The biggest fucking moron in economic history.  Nice job Harvard.  Really.  Right up there with your other graduate Ted Kaczynski.

Mon, 06/04/2012 - 05:12 | Link to Comment Optimusprime
Optimusprime's picture

Ted Kaczynski actually had interesting observations to make about industrial society.  So I would rate him well above Summers in long-term social utility.

 

Just don't accept mail from him...

Sun, 06/03/2012 - 20:59 | Link to Comment dolph9
dolph9's picture

In due time these guys will be dead.

And slowly but surely, the goldbugs will take over.  And then we'll run things for 500 years.

Such is the ebb and tide of history.

Sun, 06/03/2012 - 21:21 | Link to Comment X.inf.capt
X.inf.capt's picture

uh...

first comes....

the collaspe...

the riots....

and the zombies...

(sigh)

Sun, 06/03/2012 - 21:00 | Link to Comment yoda585
yoda585's picture

This guy, a pereniial candidate for president of Dumfukistan, can't possibly be as stupid as that statement. Do he and Biden have some kind of schedule where they take turns as spokesperson of the "dumb fuck of the week" coalition?

Sun, 06/03/2012 - 21:01 | Link to Comment Meltdownman
Meltdownman's picture

Everyone should watch this documentary on the financial crisis and the role Larry Summers played:

THE WARNING

http://www.pbs.org/wgbh/pages/frontline/warning/

 

The Meltdownman

Sun, 06/03/2012 - 21:30 | Link to Comment Westcoastliberal
Westcoastliberal's picture

Yep, Meltdownman, Brooksley Born is one of my heroes.

Sun, 06/03/2012 - 21:02 | Link to Comment Tuffmug
Tuffmug's picture

Larry is NOT dumb! Larry Summers is a con man like Bernie Madoff who is indirectly stating the truth:

1) that Ponzi's and bubbles can never be allowed to deflate and;

2) they must be fed with ever expanding amounts of debt and confidence and;

3) Ponzi's and bubbles are advantageous to the Ponzi perpetrators.

Sun, 06/03/2012 - 21:03 | Link to Comment Todd Horlbeck
Todd Horlbeck's picture

He is is crazy!

Sun, 06/03/2012 - 21:04 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Oh, Larry.. you've done it again....

Sun, 06/03/2012 - 21:11 | Link to Comment WmMcK
WmMcK's picture

We are all Magoos now.

Sun, 06/03/2012 - 21:05 | Link to Comment Texas Ginslinger
Texas Ginslinger's picture

Well, you have to at least admire Summers' candor.

Bernanke won't even admit that the Fed prints money - he said that last year in a 60 Minutes interview.

He's wealthy, probably has a lot of it safely tucked away offshore, may even have a 2nd passport fom a Caribbean country - what does he care, really...???

 

Sun, 06/03/2012 - 21:05 | Link to Comment mendolover
mendolover's picture

He knows damn well exactly what he is saying!  It's a fucking set up!

Sun, 06/03/2012 - 21:11 | Link to Comment RobotTrader
RobotTrader's picture

If we would have followed Summers and Krugman's advice, the 10-yr. yield would be at 4%, not 1.45% and the Dow would be at 15,000+, not under 12,000 again.

Yeah, gold would be at $2,000 and gas would cost $5/gal. but who cares?

The economy would be booming and there would be job creation everywhere.

Krugman and Summers will prove to be geniuses.

Bernanke was a genius until the last 3 weeks, but he screwed up by slamming commodities too hard and his Operation Twist created the biggest bond bubble ever recorded at the expense of jobs and a healthy equity market.

Sun, 06/03/2012 - 21:24 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

RT - you're either being humorous or dead wrong. Pick one.

Sun, 06/03/2012 - 21:24 | Link to Comment CloseToTheEdge
Sun, 06/03/2012 - 21:26 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Did MDB change his handle? He sounds like this douchebag now.

Sun, 06/03/2012 - 22:12 | Link to Comment nmewn
nmewn's picture

ROTFLMAO!!!

If it's so easy...tell em to fix it...again ;-)

Sun, 06/03/2012 - 21:17 | Link to Comment Westcoastliberal
Westcoastliberal's picture

Using Mr. Summer's logic, if a tire on my car was flat, the only solution would be to release the air from the other 3 tires, plus the spare.  Remember, this is the guy that mismanaged the Harvard endowment, losing something close to $2 Billion.

I can't understand why anyone includes him in discussions or listens to his opinions.  I feel the same way about Alan Greenspan, for the record.

Sun, 06/03/2012 - 21:25 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Harvard circa 2006-2007 believed that they were Masters of The Universe, and had the key to pure alpha, without work.  Total insanity/madness.

Sun, 06/03/2012 - 22:15 | Link to Comment nmewn
nmewn's picture

+1

Arrogance combined with incompetence is a dangerous thing.

Mon, 06/04/2012 - 05:21 | Link to Comment krispkritter
krispkritter's picture

Are we talking Summers or Obama...ahhh, both, gotcha.

Sun, 06/03/2012 - 21:26 | Link to Comment geekgrrl
geekgrrl's picture

His underlying reasoning mentioned in the article?:  "There is, of course, still the question of whether more borrowing will increase anxiety about a government’s creditworthiness. It should not, as long as the proceeds of borrowing are used either to reduce future spending or raise future incomes."

On what planet does this man live? Reduce future spending? Huh? Raise future incomes? Not likely given the trend is in the opposite direction, unless of course he is referring to banker's bonuses. Everyone knows the proceeds of borrowing will go to the parasite class, making a mockery of the suggestion that it wouldn't impact creditworthiness. At this point, more borrowing is simply stealing from future generations, whether this is openly acknowledged by Summers or not.

This is a perfect bookend to Geithner's "No risk" of a credit downgrade comment, an equally ludicrous claim made in the face of just a mountain of contradictory evidence.

 

Sun, 06/03/2012 - 21:27 | Link to Comment Steverino
Steverino's picture

"The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending.

~Larry Summers

 

Sorry Larry... Al would disagree with ya..

 

Insanity: doing the same thing over and over again and expecting different results.
~Albert Einstien

 


Sun, 06/03/2012 - 21:29 | Link to Comment booboo
booboo's picture

saw larry at an all you can eat chinese buffet, the owner came out and said, "you eat all you can eat, you go now fat man, no come back!!!

Sun, 06/03/2012 - 22:01 | Link to Comment WmMcK
WmMcK's picture

Louie Anderson - head right for the wicker.

Sun, 06/03/2012 - 21:36 | Link to Comment Dadburnitpa
Dadburnitpa's picture

This man is the embodiment of Chauncey Gardner.

Sun, 06/03/2012 - 21:41 | Link to Comment oldgasII
oldgasII's picture

Usually it takes about 30 years before they start making the same mistakes again.  This time it looks like it has taken about 50 years if you go back to Nixon going off the gold standard.  IMHAO  after the oncoming crash hits it is going to take about 70 years befire they let a central controlled economic theorist out of a cage. It is interesting that the countries that are doing fairly well have done it by cutting spending and keeping taxes low, the Red States and Iceland, while the Blue States and countires like Greece going down the poop tube are increasing spending, taxing and borrowing until they have to pay loan shark interests to make payrolls. 

Sun, 06/03/2012 - 21:42 | Link to Comment imapopulistnow
imapopulistnow's picture

Why the hell not?  The world is crashing.  If other people want to buy our 30 year bonds at a real interest rate of zero, then sell them.  Sell everyone of them that we can.

Sun, 06/03/2012 - 21:44 | Link to Comment RobotTrader
RobotTrader's picture

Bottom line is that you gotta be a fool not to print as much as you can when interest rates are at 60-year lows and investors are buying bonds come hell or high water no matter how little interest they receive.

Mon, 06/04/2012 - 06:23 | Link to Comment Escapeclaws
Escapeclaws's picture

With all due disrespect RobotTrader, you should read Antal Fekete on the liquidation value of debt.

Sun, 06/03/2012 - 21:44 | Link to Comment hazek
hazek's picture

Is it possible to get more retarded than that? I highly doubt it.

Sun, 06/03/2012 - 21:57 | Link to Comment TempFlashback
TempFlashback's picture

Photo caption: "Food Coma"

Sun, 06/03/2012 - 22:03 | Link to Comment oogs66
oogs66's picture

We need new politicians and new advisors. Holy crap this guy scary

Sun, 06/03/2012 - 22:15 | Link to Comment Frastric
Frastric's picture

 Definitions of stupid:

 
1. Lacking ordinary quickness and keenness of mind; dull.
2. Characterized by or proceeding from mental dullness; foolish; senseless: a stupid question.
3. Tediously dull, especially due to lack of meaning or sense; inane; pointless: a stupid party.
4. Annoying or irritating; troublesome: Turn off that stupid radio.
5. Larry Summers
Sun, 06/03/2012 - 22:18 | Link to Comment Lokking4AnEdge
Lokking4AnEdge's picture

 

ReutersCypriot President Demetris Christofias says the island nation's economy, the third-smallest in the euro zone, is affected by heavy exposure to Greece.

NEW YORK (MarketWatch) -- Cyprus may seek financial aid from its European neighbors as early as this month, making it the fourth country to tap the region's temporary bailout fund, according to media reports.

The tiny island nation may need a bailout to recapitalize its banks, which are feeling the effects of the crisis in Greece, its neighbor, the country's central bank governor has told the Financial Times.

Panicos Demetriades said the country was at "an important crunch time," according to the newspaper Sunday.

The Wall Street Journal reported on Saturday that Cyprus' second-largest bank is seeking government aid, which would deeply strain the island's public finances and make it miss this year's budget targets.

Michalis Sarris, Popular Bank's chairman, told the FT "it is hard to see where [the capitalization] is coming from, if not Europe."

Cyprus is already rated below investment grade by two major rating agencies and it pays a yield around 14% on its 10-year bonds, according to the Journal.

The central banker's comments came shortly after Demetris Christofias, the president of Cyprus, said it wasn't certain whether the country would seek a bailout, but he couldn't exclude the possibility, according to the BBC.

Christofias said at that time Cyprus also was looking at contingency plans if Greece leaves the euro, because his country's financial system's exposure to Greece is estimated to be more than its total gross domestic product, reports said.

Sun, 06/03/2012 - 22:42 | Link to Comment hornster
hornster's picture

To hear Summers was a part of change we could believe in.

Sun, 06/03/2012 - 22:35 | Link to Comment blindman
blindman's picture

http://www.zerohedge.com/contributed/2012-06-03/jp-moron-zombie-finance-...
dizzyfingers
Vote up!
5
.Vote down!
-1
.Economics is the publishing of political agendas that are hidden within known-false
assumptions. If one accepts these assumptions then one accepts the hidden agendas. http://www.jayhanson.us/index.htm reply
Sun, 06/03/2012 - 12:25 | 2489217 blindman
Vote up!
0
.Vote down!
0
.
http://www.debtdeflation.com/blogs/
.
The End of the Communist Dynasty
by David Lawson on June 3rd, 2012 at 11:47 am
Posted In: Debtwatch
.."Some may argue that the Minsky market driven instability hypothesis is not suited
to China and that they are chiefly a centrally planned state controlled economy. This
reflects a fundamental misunderstanding of Minsky’s work. The Western economies’ attempt
to centrally plan economic activities from the consumption end, the state based
capitalism that China has become known for attempts to centrally control the economy from
the production side.

The Chinese production economy cannot be seen in isolation from the consumption economies
of the West; debt based consumption provided the umbrella under which the Chinese miracle
grew. When the GFC collapsed Western debt based consumption reacted by providing the last
line of Minsky Ponzi financing via government bail-outs. Governments faced with banking
collapse chose keep the system going by transferring debt from private hands to those of
the taxpayers." ..
and so you can also find at the dizzy link ....

"“The problem is, of course, that not only is economics bankrupt but it has always been nothing more than politics in disguise … economics is a form of brain damage.”
— Hazel Henderson"" and much more

Mon, 06/04/2012 - 06:30 | Link to Comment Escapeclaws
Escapeclaws's picture

That is a good article over at Steve Keene's Debtwatch. Keene has the most cogent criticisms of Keynesians, neo-classical mainstream economists, and monetarists. All of these types ignore debt according to Keene. These mainstream economists have all the credibility of their MSM shills, like Diane Sawyer, that smarmy "dripping with sincerity"--but I digress.

Sun, 06/03/2012 - 22:38 | Link to Comment nathan1234
nathan1234's picture

Larry Summer's brains have gone even lower.

Plunged to the depths of then Mariana Trench

And these are the people who have been advising and running the world

No wonder the mess we are in for which there is no solution but to start all over again

 

Sun, 06/03/2012 - 22:41 | Link to Comment SqueekyFromm
SqueekyFromm's picture

Dear MasterCard:

How are you??? Fine I hope.  I know I haven't made a payment in 8 months, and your bill collectors are trying to find me, but this really smart guy named Larry Summers has a way out for both of us!!! He says that if I borrow some more money it will improve my creditworthiness. Sooo, I am willing to give it a try if you are.

Just send me like a $25,000 card, and I promise I will pay you back. OK???

Sincerely,

Squeeky Fromm, Girl Reporter

Sun, 06/03/2012 - 22:56 | Link to Comment loveyajimbo
loveyajimbo's picture

If the top 100 douchebags in the US were sent to Guantanamo... things would improve dramatically... Summers may not make the cut, but he is in the running... Blankfein, Dimon, Geithner, Holder, Shapiro, Gensler, Bernanke, Krugman, Boehner, Pelosi, Cantor, Reid, McConnell... Bush, Cheney, rove, Rush, O'Reilley, Maddow, Kyl, HANNITY...join in for a different kind of NWO!!  Just imagine life without these dog turds...

Mon, 06/04/2012 - 06:32 | Link to Comment Escapeclaws
Escapeclaws's picture

I see Bob Rubin and Phil Gramm get a free pass.

Sun, 06/03/2012 - 23:16 | Link to Comment Frankie Carbone
Frankie Carbone's picture

You'd think that Larry Summers is the dumbest motherfucker in academia  government Wall Street, Jesus Christ! What fucking third of the ruling triangle is he in lately? 

I digress. Truth is, he's not even close to the dumbest fucker out there. 

Sun, 06/03/2012 - 23:21 | Link to Comment Rick Blaine
Rick Blaine's picture

Maybe he was being sarcastic...?

 

 

/sarcasm off

Sun, 06/03/2012 - 23:29 | Link to Comment pissing_excellence
pissing_excellence's picture

Larry, Larry, Larry did you ever think that these numbers you crunch have names and unpredictable random potential not under your plump thumbs?!?, a lot of people are absolute shit, granted.....I cant argue, but as one of the tylers knows mutations pop up eventually enough of these savant mutations will find the thing you and your viagra pals overlooked.  If thats not true throughout history ,you and me and everyone else wouldnt even be here.  Your killing the reasons why this place was great, you can make this hell or heaven your choice, princess. I hate to burst your bubble, but your not that smart.....just got lots of empty headed robot yes men around you, Im a dunce but Larry you take the cake.

Todays lucky number is 3

http://youtu.be/SRXrfNWvHZc

Sun, 06/03/2012 - 23:43 | Link to Comment Bartanist
Bartanist's picture

Actually I thought the way that it could get sorted out was with a completely free market of competing currencies and competing investment opportunities.

A managed economy and monopolistic currency system seems to to lead to malinvestment and corruption. People do not have a choice and those managing the system always favor themselves.

It is under all circumstances due to fail when run by flawed human beings ... and we are all flawed.

Mon, 06/04/2012 - 00:13 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Were the spending cuts on mental institutions really that severe?

Mon, 06/04/2012 - 00:58 | Link to Comment Rothosen
Rothosen's picture

This is the problem with incredibly brilliant people. They are incapable of admitting their theory is flawed, even when all evidence points to that conclusion. Bernanke, Greenspan, Summers, Geitner, et al. Cannot believe they could be wrong. MIT at 16, Harvard Proffessor at 28. They will cling forever to their mistaken ideals. Such men are dangerous!

Mon, 06/04/2012 - 01:03 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Lawrence needs a good Bitch Slappin.

Ppssst Larry......Fuck You.....!!!

Mon, 06/04/2012 - 01:04 | Link to Comment BlackholeDivestment
Mon, 06/04/2012 - 01:24 | Link to Comment Element
Element's picture

Self-nominating for the No-Bell Prize in stoopid?

Mon, 06/04/2012 - 02:13 | Link to Comment CABill
CABill's picture

Obama can sure pick 'em, can't he?  What a wonderful cousel of economic advisors he's picked.  Summers, Reich, Romer, and not to mention Geitner, the worst possible choices.  Maybe the Nobel peace prize winning warmonger can start another war to boost the economy?

Mon, 06/04/2012 - 02:28 | Link to Comment cnhedge2
cnhedge2's picture

Is the Euro Ending or Beginning?
http://www.cnhedge.com/thread-6926-1-1.html

Mon, 06/04/2012 - 03:24 | Link to Comment Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

As long as the machine's broke, people like him will keep peddling the 'It's not enough, I'm a genius' line while hiding behind their trump card of 'I told you so (but I can't prove it). But I'm still a big shot'.

 

So how much is enough? Enough is not enough. The concept of infinity has been usurped by these self-important voodoo mystics.

 

If they completely had their way, and it didn't work, they'll find something else to blame other than themselves. Not working so far...

Mon, 06/04/2012 - 03:59 | Link to Comment potlatch
potlatch's picture

When you have learned how debt is both preserved and repudiated, then you shall see: there is an egg in the sky and it neither falls nor rises, but forever yields scrambled economies upon chickens little and large.

 

 

<gong>

Mon, 06/04/2012 - 04:00 | Link to Comment css1971
css1971's picture

He isn't dumb at all. He serves his paymasters very well indeed.

Mon, 06/04/2012 - 04:14 | Link to Comment Sandmann
Sandmann's picture

Did he really accumulate $39 million from Hedge Funds in just 2 years ?

http://forgetlarry.org/about-larry/

Mon, 06/04/2012 - 05:00 | Link to Comment Inthemix96
Inthemix96's picture

Here larry let me help you out you fat fucking waste of space.

Fuck off with your stupidity man, you're stinking the place out you fat fucking scoundrel.  Seriously, I have shit things with more sense than this fat fucking twat.  And if you read this you cunt, inthemix says, fuck you and the fucking horse you rode in on, cunt.

Mon, 06/04/2012 - 05:21 | Link to Comment Peter K
Peter K's picture

Downright and unadulturated STUPIDITY, in a Krugmanist sort of sense of that word :)

Mon, 06/04/2012 - 05:41 | Link to Comment TWSceptic
TWSceptic's picture

Short term gains for long term pains, exactly the same as his diet. People like this are not only a disgrace, they are very dangerous.

Mon, 06/04/2012 - 07:23 | Link to Comment Vince Clortho
Vince Clortho's picture

Trying to squeeze the last drips of blood out of the onion.

Mon, 06/04/2012 - 08:59 | Link to Comment mademesmile
mademesmile's picture

Not to defend the undefensible, BUT isn't he just talking about infrastructure? Meaning roads, bridges, stuff we should be doing but haven't really in the push to find those shovel ready projects? Those things are necessary - so spending money at the lowest interest rates possible seems like a better idea then say, bailing out anything. At least we have a shiny new road when TSHTF. sort of a use it before you lose it philosophy.

 

 

 

 

Mon, 06/04/2012 - 09:11 | Link to Comment Isotope
Isotope's picture

Fat, overcredentialed, and intermittantly apnic is no way to go through life, son.

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