And just like that, the Summers of the democrats' discontent is gone (who for some reason saw Larry as the more hawkish of the two Fed candidates, when in reality it would have been Summers that would unleash Bernanke's money choppers) [9], as are all those unbooked profits by Paddy Power betters [10]who saw Summers as a 85% odds on favorite to become the next Fed chair, and are now left with nothing.
Full Summers letter:
Dear Mr. President,
I am writing to withdraw my name for consideration to be Chairman of the Federal Reserve.
It has been a privilege to work with you since the beginning of your Administration as you led the nation through a severe recession into a sustained economic recovery built on policies to promote employment and strengthen the middle class.
This is a complex moment in our national life. I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the Administration, or ultimately, the interests of the nation’s ongoing economic recovery.
I look forward to continuing to support your efforts to strengthen our national economy by creating a broad based prosperity and to reform our financial system so that no President ever again faces what you and your economic team faced upon taking office in 2009.
Sincerely yours,
Lawrence Summers
And the actual letter in its original, Harvard letterhead regalia:
Obama's response [11]:
Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today.
So, with the favorite now gone, with Yellen solidly out of the running, with Geithner unwilling to acknowledge he would drop everything just to be able to leak Fed secrets to banks as a Chairman as he did when he was merely head of the NY Fed [12], is it time for the first Bill Dudley trial balloon?