Resistance Led by Eliz Warren Knocks Summers Out—Now It's Yellen's Turn

[xchrom]

http://www.alternet.org/economy/larry-summers-withdraws-fed-chair-running


Larry Summers in Beijing on September 6, 2010. Summers has withdrawn from the race to succeed Ben Bernanke at the Federal Reserve.


Something to cheer about, people! If you've been concerned about the power of big banks, the need for financial reform and the blight of crony capitalism, you can breathe a sigh of relief: Larry Summers will not be your next Fed chair. The man who helped bring you the last financial crisis will not get his hands on one of the country's two most powerful economic levers.

On Sunday, the former White House economic adviser and Treasury secretary officially withdrew his name as a candidate, according to the Washington Post.

For weeks, despite Obama's apparent enthusiasm for Summers, progressives have been actively voicing their strong objections for reasons ranging from his preference for Wall Street over Main Street to his blatant sexism (for the full list, see " 7 Reasons to Fight Obama on Picking Out-of-Touch Crony Capitalist Larry Summers as Fed Chair&quot . Most recently, his troubling conflict of interest problem has been highlighted with particular attention to his lucrative consulting gig with megabank Citigroup. In the Senate, Elizabeth Warren (D-Mass) signaled strong opposition to Summers, and was joined by senators Sherrod Brown (D-Ohio) and Jeff Merkely (D-Ore). When Sen. Jon Tester (D-Mont.), considered a moderate, joined the "no" group, things began to look very shaky for Summers and the press began to predict an ugly confirmation battle.

In a letter to the President, Summers explained his reasons for stepping aside.

[Berlum]

1. Mysogynist Karma

Up the corporatist wazoo...How fitting.

[ananda]

2. I don't understand why Yellen would be much better.

Here are the articles I read, and I'm worried because Wall Street likes her.

http://www.reuters.com/article/2013/09/16/us-markets-global-idUSBRE96S00E20130916

http://www.usatoday.com/story/money/business/2013/09/15/summers-fed-bernanke-analysis/2817101/

In a USA TODAY survey, 56% of the 42 economists said they preferred Fed Vice Chair Janet Yellen for the top job. Conservatives who favor a good sound business administration wanted the quiet, liberal academic Yellen because she's closely identified with easy-money policies that have served Wall Street well.

Either camp of opponents may not have been able to kill Summers' candidacy. The combination of the two made it untenable, as Summers withdrew his name Sunday.

In his letter to the president, Summers wrote of wanting to avoid a contentious confirmation fight. Such a fight became all the more certain when three Senate Democrats (Jeff Merkley of Oregon, Ohio's Sherrod Brown and Montana's Jon Tester) signaled they would vote against him.

Generally, it has been thought Summers favored less monetary accommodation than Yellen has — which cost him support that might have offset liberal opposition. With Wall Street still nervous about the upcoming process of weaning the economy off reliance on the Fed's easy-money policies, they liked Yellen because they knew Yellen.

[Nye Bevan]

4. The Case For Janet Yellen In One Sentence

So what makes Yellen the superior choice?

In a post in July, Cardiff Garcia made the case for Janet Yellen, and included one sentence which has really stayed with us:

Not that Yellen can predict the twists and turns of the economy with perfect clarity — nobody can — but rather she has consistently shown a deep early understanding of the underlying pressures building in the economy and the scale of their potential consequences.

This is true.

In the late '90s, Janet Yellen was worried about the economy overheating. This was thoroughly discussed in Lawrence Meyer's book, "A Term At The Fed."

In the mid-2000s, Yellen was worried about the housing bubble, and the impact of a bust.

Post-crisis, Yellen has recognized that inflation is the least of our problems, and that everything the Fed does should be oriented towards addressing the unemployment problem. (Hence the "dovish" reputation.)

http://www.businessinsider.com/the-case-for-janet-yellen-in-one-sentence-2013-9#ixzz2f3RyP5ke

[ananda]

5. What worried me was the backing of Wall Street for Yellen.

That she can SEE problems doesn't mean that she has the will to solve them
because that would involve serious pain for Wall Street and the institutions
that are "too big too fail."

Talk me down on that too please.

[LuvNewcastle]

7. We're not going to be thrilled with whoever he picks.

Yellen is probably the best option we could expect, so we'll just have to be pleased if we get her.

[Demeter]

12. Ms. Yellen is a mensch, not a megalomaniac

She can see the people behind the numbers. I will be sleeping better, knowing that. And she has that increasingly rare public integrity: intellectual as well as moral. We need more of that.

And she will stop the excesses of the economic ignoramuses in the White House. I swear, they are getting stupider by the day.

[LuvNewcastle]

14. Sounds good to me.

She'll be a breath of fresh air.

[Demeter]

10. It depends on which part of Wall St. backs her

and you will find it isn't those that fly under the Jolly Roger (the banksters), but those that actually produce goods and useful services.

[ananda]

13. I hope ya'll are right.

I really want someone who backs serious regulation
and the breakup of the too-big-to-fails.

[DireStrike]

9. Yeah, we have these little battles between bad and worst.

Occasionally we "win" one and get to feel happy for 5 minutes.

I don't know a damn thing about Yellen, but I'm sure you don't get to be in charge of anything in the US without Banker approval.

[treestar]

16. Well I'm not surprised at this

However, the Annointed One has endorsed her:

http://www.democraticunderground.com/10023676001

[G_j]

20. the Anointed One?

what's that about?

[treestar]

22. Why the same thing that causes us to get called Obamabots

cheerleaders and the rest. A perception of worshipping him and thinking he is always right. Now it's funny some of those same people hold that kind of reverence for Senator Warren.

[MrMickeysMom]

3. This additional "fight" for what's proper could have been avoided by Obama...

The fact that he'd consider Summers is enough to make me hurl...

[LuvNewcastle]

6. He shouldn't have been Treasury Secretary or even on Obama's

economic team. Yet Obama apparently couldn't get enough of him. It's just weird.

[flpoljunkie]

8. Elizabeth Warren will be on Morning Joe to discuss Summers. Ubiquitous McCain on right now.

McCain just finished.

[flpoljunkie]

11. Warren's on Morning Joe right now!

[raindaddy]

15. First Syria and now Summers

Maybe we've finally come to the point where if the Dem party is stretched any further to the right it'll rip apart. Mr. Obama take note!!!

[Lifelong Protester]

17. Now we're getting somewhere!

I was so happy to see this yesterday, and Elizabeth Warren just continues to rise in my estimation.

Well, Mr. Summers, bitch slapped by the 'invisible hand' , eh?

[gopiscrap]

18. Thank you Elizabeth Warren!

[underpants]

19. Look at that guy eating boogers n/t

[Laelth]

21. Good news. k&r for Elizabeth Warren. n/t

-Laelth