On Friday, I mentioned that upon hearing economist Larry Summers being a top contender as new Fed chairman I did some research to refresh my biographical knowledge of him.
What came through very definitively is that while being extremely bright, highly experienced and unquestionably credentialed, he’s also known for thinking independently and standing his ground. Those qualities could very well make it highly likely he’d move very rapidly toward slowing down the Fed’s current policy of pumping the economy with low to no-cost funds that are now providing large, highly-rated borrowers huge sums almost for free.
So, what happened over the weekend is that powerful leftists became concerned that if Summers were appointed, a more rational monetary approach could very well cause the Fed to begin really thinking about what it was doing. And, in that case, the central bank would move away from helping the administration artificially cloud the economy’s weak condition as its doing now, but in the far more important long run allow money-market rates to stabilize.
However, since this administration continually puts image, appearance and self-serviance far above anything else, no matter, Mr. Summers has withdrawn his name for consideration for the position.
And although he claims withdrawal was of his own choosing, I still believe I was right on Friday when the results of my homework suggested he might be perfect for the job, but would not be appointed to it. Because if there’s something that’s absolutely consistent about this administration, it’s the fact that if anything's good for the nation, they’ll find a way to undo it regardless.
That’s it for today folks.
Adios
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