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 - 20:17 | 2490318 razorthin
razorthin's picture

He's a financial Hitler.  A total disaster.  How's that Harvard endowment fund doing, Lar?

Sun, 06/03/2012 - 20:20 | 2490323 theTribster
theTribster's picture

Kill him if you can, LS needs to meet his maker - one of the biggest criminals of the last century.

Sun, 06/03/2012 - 20:20 | 2490324 williambanzai7
williambanzai7's picture

FATZO (Larry Summers)

Sun, 06/03/2012 - 20:59 | 2490427 Ineverslice
Ineverslice's picture

Hey Zombies...come and get this Fat-Boy!

Sun, 06/03/2012 - 21:01 | 2490441 williambanzai7
williambanzai7's picture

ECONOMICUS FAT SLOBICUS

Sun, 06/03/2012 - 21:34 | 2490502 Uchtdorf
Uchtdorf's picture

Again with the screws. You been feelin' some pressure lately? All the best,

Sun, 06/03/2012 - 22:29 | 2490620 williambanzai7
williambanzai7's picture

Screw U.... Not my alma matter...Whats a Matta U? ;-)

Sun, 06/03/2012 - 21:33 | 2490498 Uchtdorf
Uchtdorf's picture

Yeah, we don't need to be able to outrun zombies. We just got to be able to outrun Lazzy Summers.

Sun, 06/03/2012 - 20:21 | 2490326 Temporalist
Temporalist's picture

"We can improve everyone's standard of living, not by stealing less, but by stealing more." Larbentim Sumbernankgeit

Sun, 06/03/2012 - 20:21 | 2490327 Pasadena Phil
Pasadena Phil's picture

Let me see if I understand this. If I am drunk as a skunk blowing a 1.5 on the breathalyzer but the government resets the standard to 2.0, I should drink more to prove that I am sober? Brilliant!

Sun, 06/03/2012 - 20:32 | 2490351 Al Huxley
Al Huxley's picture

If you're too drunk to drive, but you have to drive home, the best way to sober up is to keep drinking.

Sun, 06/03/2012 - 20:23 | 2490328 LetThemEatRand
LetThemEatRand's picture

He doesn't believe his own bullshit.  He just wants a seat at the oligarch table when the SHTF.

Sun, 06/03/2012 - 20:23 | 2490330 New_Meat
New_Meat's picture

He's hysterical!

- Ned

Sun, 06/03/2012 - 20:25 | 2490332 nawerdenn
nawerdenn's picture

Is it possible he's actually just believing that by spraying a fire with gasoline, they're going to extinguish it?

Sun, 06/03/2012 - 21:00 | 2490435 nonclaim
nonclaim's picture

By their logic either that works or GDP will improve by a few points.

Sun, 06/03/2012 - 22:45 | 2490647 epwpixieq-1
epwpixieq-1's picture

Well, he is not a physicist he is an economist, what do you expect!

Sun, 06/03/2012 - 20:27 | 2490335 blindman
blindman's picture

it is a harvard thing,. he is drinking from
the charles.

Sun, 06/03/2012 - 23:38 | 2490739 Wakanda
Wakanda's picture

luv that dirty water...

Mon, 06/04/2012 - 00:55 | 2490853 blindman
blindman's picture

http://www.youtube.com/watch?v=5apEctKwiD8
The Standells - Dirty Water
.
(Spoken:)
I'm gonna tell you a story
I'm gonna tell you about my town
I'm gonna tell you a big fat story, baby
Aww, it's all about my town

Yeah, down by the river
Down by the banks of the river Charles (aw, that's what's happenin' baby)
That's where you'll find me
Along with lovers, fuggers, and thieves (aw, but they're cool people)
Well I love that dirty water
Oh, Boston, you're my home (oh, you're the Number One place)
Frustrated women (I mean they're frustrated)
Have to be in by twelve o'clock (oh, that's a shame)
But I'm wishin' and a-hopin, oh
That just once those doors weren't locked (I like to save time for
my baby to walk around)
Well I love that dirty water
Oh, Boston, you're my home (oh, yeah)

Because I love that dirty water
Oh, oh, Boston, you're my home (oh, yeah)

Well, I love that dirty water (I love it, baby)
I love that dirty water (I love Baw-stun)
I love that dirty water (Have you heard about the Strangler?)
I love that dirty water (I'm the man, I'm the man)
I love that dirty water (Owww!)
I love that dirty water (Come on, come on)

Sun, 06/03/2012 - 20:27 | 2490336 CommunityStandard
CommunityStandard's picture

Europe should just put Larry in charge to speed up the end of the Euro.

Sun, 06/03/2012 - 20:29 | 2490342 gwar5
gwar5's picture

Thanks to Summers the 2009 $1 Trillion Stimulus produced worse results, by their own charts, than if we had done absolutely nothing.

 

He also stated privately in 2009, along with Stiglitz, that US economic malaise and unemployment over 10% would go on for years and years (and per U-6, so far so good).  Such things are not good vote getter, so was not said publicly.

Sun, 06/03/2012 - 20:29 | 2490343 nmewn
nmewn's picture

Only in the dimly lit corners of financial whackademia can such pearls of wisdom be found.

Look!!!...here's one!!!

Sun, 06/03/2012 - 20:36 | 2490346 Poor Grogman
Poor Grogman's picture

He has opened his mouth and removed all doubt , again..

EDIT This isn't another ZH zombie alert is it?

Sun, 06/03/2012 - 20:45 | 2490384 nmewn
nmewn's picture

I just shot a zombie in my pajamas...

Sun, 06/03/2012 - 20:59 | 2490431 Diogenes
Diogenes's picture

What was a zombie doing in your pajamas?

 

 

Sun, 06/03/2012 - 22:07 | 2490570 nmewn
nmewn's picture

lol...black dog & lebalance have given me a couple ways to go here...I'm stayin with Groucho ;-)

Sun, 06/03/2012 - 21:03 | 2490445 BLACK_DOG
BLACK_DOG's picture

I aint going there!

Sun, 06/03/2012 - 21:28 | 2490485 LeBalance
LeBalance's picture

no kids 4 you!

Sun, 06/03/2012 - 20:32 | 2490349 GOSPLAN HERO
GOSPLAN HERO's picture

TOO MUCH..¸„ø¤º°"¨

¸„ø¤º°"Adrenochrome``"°

Sun, 06/03/2012 - 20:35 | 2490358 Conrad Murray
Conrad Murray's picture

We can't stop here, this is bat(shit crazy) country!

Sun, 06/03/2012 - 20:32 | 2490350 fnordfnordfnord
fnordfnordfnord's picture

WAR IS PEACE, FREEDOM IS SLAVERY, and IGNORANCE IS STRENGTH.

 

PS Thanks to the hard work of those at Miniplenty, cauliflower rations are increased this week by 1/2%

Sun, 06/03/2012 - 21:37 | 2490509 Uchtdorf
Uchtdorf's picture

But that other ministry had to first remove all mention of the 30% decrease in output just last week.

Sun, 06/03/2012 - 20:39 | 2490352 hankwil74
hankwil74's picture

It is just insane to me that someone actually thinks the the solution to out of control borrowing is increasing the amount of borrowing.  People just need to wake up to the fact that it doesn't matter who gets into office, a Repub or a Dem, or a Libertarian, or a Socialist.  Unemployment is here to stay.  It used to take 26 people to build a car, now it takes 2.  You used to have to go to your local electronics store to find out about a new TV or a new camera or microwave, now everyone just goes on CNET.  Scores of stores across the country stocked with customer service people have been replaced by 40ppl running a website and 6 strategically placed warehouses.  The middle class assembly line job that allowed your wife to stay home with the 3 kids has been moved to China where someone is paid $1.31 an hour.  There just aren't enough jobs to go around.

It only matters how we as individuals respond to the changing world/economy, because the political structure in the United States is NEVER GOING TO CHANGE.  Corporations fund every political candidate and an honest politician could simply never gain traction (see Paul, Ron).  Live frugally, become more self-sufficent when possible, maintain one's health by eating whole foods, have a supply of food, water, some hard currency, a firearm or two.  

Sun, 06/03/2012 - 20:48 | 2490394 Everybodys All ...
Everybodys All American's picture

Employment disadvantages can be leveled by instituting the proper tarrifs. It takes leadership. Obama is not a capable leader. So it's time for someone else to step up. I'm optimistic that guys like Krugman and Summers have been exposed for their ignorance and a new era of common sense economics will be upon us all soon. BTW it will take a market crash first.

Sun, 06/03/2012 - 22:25 | 2490617 Dumpster Fire
Dumpster Fire's picture

Another one?

Mon, 06/04/2012 - 03:05 | 2490881 Cosimo de Medici
Cosimo de Medici's picture

First, modern monetary theory says that the heavily indebted must borrow more to hold them over until they need to access the debt market again.  You, know, debt is a journey and not a destination.  Enjoy the ride.

As for unemployment in a world of increasing efficiency and decreasing resources, the equity market was shown the future and it spit in its Face(book).  Yes, Facebook is the future.  Its intended purpose is to waste time, which means decreased efficiency, and it uses an absolute minimum of scarce natural resources to manufacture its product.  The added benefit is that it does actually employ a few people.  Keeps the kids off the streets, too.  Embrace it.

Sun, 06/03/2012 - 20:33 | 2490356 max2205
max2205's picture

Jaba

Sun, 06/03/2012 - 20:37 | 2490363 junkyardjack
junkyardjack's picture

Its been all downhill since Obama let him leave, we could use this kind of wise guidance in times of crisis....

Sun, 06/03/2012 - 20:38 | 2490364 Ricky Bobby
Ricky Bobby's picture

 

They just keep saying 2 + 2 = 5 because a majority of Muppets will believe what they are told.  This is fun for the Oligarchs, it makes them feel so powerful near God like. To know that they can make the masses believe anything they want. In addition this kind of nonsense is also a sledgehammer used to crush the hope of the rational resistors.

 

 

 

Sun, 06/03/2012 - 20:46 | 2490385 Poor Grogman
Poor Grogman's picture

I hear what you are saying, but I think the head just flew off the sledgehammer and hit the oligarchy in the balls.

Sun, 06/03/2012 - 20:39 | 2490370 razorthin
razorthin's picture

Larry Lumbergh Summers

http://www.youtube.com/watch?v=lzHw35ulVpE

 

Sun, 06/03/2012 - 20:41 | 2490375 Snakeeyes
Snakeeyes's picture

Summers is a die hard Keynesian. Nothing, no evidence, will convince their superior entities of their folly. Like Krugman, Romer, etc.

Sun, 06/03/2012 - 20:42 | 2490378 tom a taxpayer
tom a taxpayer's picture

Larry Summers -

"Summers also served as the 27th President of Harvard University from 2001 to 2006. Summers resigned as Harvard's president in the wake of a no-confidence vote by Harvard faculty that resulted in large part from Summers's conflict with Cornel West, financial conflict of interest questions regarding his relationship with Andrei Shleifer, and a 2005 speech in which he suggested that the under-representation of women in science and engineering could be due to a "different availability of aptitude at the high end," and less to patterns of discrimination and socialization.

Summers has also been criticized for the economic policies he advocated as Treasury Secretary and in later writings.[3] In 2009, he was tapped by President Obama to be the director of the White House National Economic Council.[2][4]"

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

Sun, 06/03/2012 - 21:19 | 2490470 BLACK_DOG
BLACK_DOG's picture

"During Summers's presidency at Harvard, the University entered into a series totalling US$3.52 billion of interest rate swapsfinancial derivatives that can be used for either hedging orspeculation. Summers approved the decision to enter into the swap contracts as president of the university and as a member of Harvard Corp., "the university's seven-member ruling body" which bears "the school's ultimate fiduciary responsibility." By late 2008, those positions had lost approximately $1 billion in value, a setback which forced Harvard to borrow significant sums in distressed market conditions to meet margin calls on the swaps."

Mon, 06/04/2012 - 05:09 | 2490988 Optimusprime
Optimusprime's picture

To give the devil his due, Summers was obviously correct about women and engineering. 

Sun, 06/03/2012 - 20:42 | 2490379 lynnybee
lynnybee's picture

when this goes down, certain people will be hunted down in the world & brought to trial ... clawback, payback & justice , nothing less.   add Clinton & Rubin to that photo .   

Sun, 06/03/2012 - 20:45 | 2490383 Hannibal
Hannibal's picture

Why even give this clueless moron first class idiot any attention?

Sun, 06/03/2012 - 20:50 | 2490399 monopoly
monopoly's picture

HUH?

Sun, 06/03/2012 - 20:50 | 2490403 Conman
Conman's picture

Sounds like krugman,mspnd your way out of recession.

Sun, 06/03/2012 - 20:50 | 2490404 marriedgeordie
marriedgeordie's picture

i have this feeling that day after day i am gaining a better and better understanding of how people must have felt in Germany between the world wars.

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