Just Let Larry (Summers) Be Larry (Summers)
Shades of the old adage in the 80s that we need to just let Reagan be Reagan, TNR, in a lengthy profile piece, argues that we need to starting letting Obama economic advisor Larry Summers be Larry Summers:
But, when it comes to the bank bailout, the consensus is that Summers has scrupulously respected Geithner's turf. It's not that Summers doesn't have opinions of his own, or that he doesn't share them with Geithner. But, to the extent the two disagree, it's Geithner who gets his way. This is perhaps one reason why the bank bailout seems, in terms of its aggressiveness and boldness, the least Summers-like of all the administration's economic plans.
In July, when he was still a civilian, Summers argued in the Financial Times that the government should use its "receivership power" over Fannie Mae and Freddie Mac to wipe out holders of regular and preferred stock and certain types of bonds, "conserving cash for the benefit of taxpayers." He said it should run the companies until the financial crisis passed--perhaps a period of several years--before selling off certain components to the private sector. "It is a time for decisive action," Summers wrote.
…Still, the question arises: If the Obama administration fails to revive the economy, will it be because Summers is too influential over economic policy, or not influential enough?
More here.
