Summers: Obama will persuade bankers to increase lending because we were there for them

[The Northerner]

Senior White House economic adviser Lawrence Summers said Sunday that he expects employment levels in the country to rise in the spring.

"That is the judgment of most professional forecasters," Summers told ABC's "This Week." "If you look at the employment statistics they will show employment growth. They were showing losing 700,000 jobs a month. Last month they showed losing 11,000 jobs. They will bounce from month to month. But I believe that, as do most professional forecasters, that by spring the employment growth will start to be turning positive."

The assertion was surprisingly direct. The Obama White House has shied away from making testable predictions ever since two of the president's chief aides predicted unemployment topping out at eight percent with passage of the stimulus bill.

Later, host George Stephanopoulos told Summers, "President Obama is calling in the heads of some of the country's biggest banks tomorrow to try to get them to lend more to small businesses and consumers, and that seems to be a big failing so far."

Summers defended Obama's attempts to persuade banks to increase lending. "The country did incredible things for the banking industry. Those things had to be done to save the economy, but no major bank would be intact, in a position to pay bonuses, if that extraordinary support had not been provided. The bankers need to recognize that. They need to recognize that they've got obligations to the country after all that's been done for them, and there is a lot more they can do, and President Obama is going to be talking with them about what they can do to support enhanced lending to customers across the country. We were there for them. And the banks need to do everything they can to be sure they're there for customers across this country."

Read more: http://www.huffingtonpost.com/2009/12/13/summers-employment-number_n_390224.html

[bluestateguy]

1. We shall see

JFK was able to persuade the steel companies to hold down price increases in 1962, without any legislation.

We shall see. I'll keep an open mind either way.

[DURHAM D]

2. words, just words

[hadrons]

3. Oh Larry, it will take more than saying 'pretty please'

[pscot]

4. Tell us another one, Larry

He should work this into a standup routine. The audience is in the mood for sarcasm.

[greennina]

5. Instead, they'll just refuse to loan us money...

so we all lose our homes and thent the few remaining banks own the entire country.

[westerebus]

6. RIGHT

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

[pa28]

7. We needed loan requirements and compensation caps written into the bailouts.

Bankers understand contracts but these institutions got public money with few strings. Maybe we'll learn something now; the funds were given under conditions of duress with no critical analysis or discussion to protect the public. In the moral geometry of a financial institution the government is in no position to make demands.

Asking them to act in the best interest of the country will result in blank stares all around. They might make some token promises but I'm sure they'll point out they received and used the money within the required terms and are under no further obligation.