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View Diary: CNBC Calling Summers as Obama's Pick for Fed Chair (83 comments)

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  •  Benefits to Repubs of Obama nominating Summers (0+ / 0-)

    Ammunition to Republicans from this appointment is even worse than you think.

    As commenter sherparick on Brad Delong's blog references and frames, an unpublicized issue that:

    will detonate on Summers unless the banks manage to lobby the Republicans on the Senate Finance committee into silence and avoid using this huge opportunity to embarrass Obama and help then paint him and the Democrats as "crony Socialists" for the rich in the next election
    As discussed here, this issue (which I had not heard of) is:
    Harvard’s Russia scandal, in which Summers’s close friend and collaborator Andre Shleifer was found to have attempted to muscle into the mutual fund business for himself while advising his Russian enablers on behalf of the US State Department.

    The closer you look at Summers’s not-so-tacit approval of the affair, the more appalling it becomes. That fact that no one in economics has mounted a defense of Shleifer’s and Summers’s conduct – not Andrei, not Larry, not any of their numerous seconds – should tell you all you need to know: their actions were indefensible. All the more alarming has been Summers’s ability to suppress criticism.

    A long analysis of this matter is posted here.

    A shorter summary, with emphasis on reactions from Harvard faculty, appeared in the Harvard student newspaper posted here, with the following eye-grabbing lead-in quote:

    “I’ve been a member of this Faculty for over 45 years, and I am no longer easily shocked,”
    Cue to Republicans (not only on the Senate Finance Committee or even in the Senate):

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