Comments on: Summers over http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Urban_Guerilla http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48103 Tue, 17 Sep 2013 12:39:09 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48103 Summers was wrong fro the job agreed. But Yellen? Gender aside the record of the fed through the crisis has been one of abject failure.

The choice between summers and an insider is startlingly poor.

Surely there were better choices?

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By: Auros http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48102 Tue, 17 Sep 2013 06:49:15 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48102 Felix, name one Republican who could plausibly win their party’s nomination, who you can confidently assert would not politicize the $&*$% out of any and all nominations he could lay hands on.

Come on. These are the people who, before the ink was dry on the Supreme Court’s evisceration of the Voting Rights Act, were out drafting new and improved voter suppression laws. Like Fidesz in Hungary, they’ll do basically anything to consolidate power. The only way they’re going to change is by being vanquished so thoroughly that either some kind of sane wing can come back in and get power over the party again, or some new party replaces them entirely. (Libertarians? New Whigs? or maybe the Greens rise on the left and the Dems become the center-right party so many of them seem to want to be anyhow?) We’re nowhere near getting to that point yet, though, and it’s not going to happen in the next ten years. I could believe twenty, but not less.

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By: eric20008 http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48093 Mon, 16 Sep 2013 10:16:09 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48093 President Obama’s vacillating leadership style is one of the most troubling legacies of this brawl. As you correctly point out, it was marked by uncertainty and doubt. This lack of conviction invites further challenges and attacks.

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By: NeuroN http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48091 Mon, 16 Sep 2013 02:11:23 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48091 Jake987, He linked to a FT Alphaville post that provides economic policy reasons describing Yellen’s superiority for the position.

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By: DG_TOR http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48090 Mon, 16 Sep 2013 01:38:35 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48090 Apt title that! Took a couple of seconds to sink in…:)

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By: markclose http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48089 Mon, 16 Sep 2013 00:00:21 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48089 “I hope that Washington will learn from this debacle, and that if the Republican candidate wins the next presidential election, he or she will feel free to re-nominate Janet Yellen.” Ha! They’ll likely nominate Rick Perry.

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By: SadPaulRyan http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48088 Sun, 15 Sep 2013 23:44:14 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48088 A few things.

Firstly, I’ll put my cards on the table that I would prefer a Janet Yellen nomination, just based on the amount of time she’s spent accruing relevant experience and her prescient dovish advocacy. The only concern I have about her is age, since she’s 67 and a Republican successor could use that excuse when deciding not to reappoint. For that reason, then, I would suggest appointing Christy Romer as a close second, as she’s 54 has experience working directly alongside Summers and Obama as the leader of the Council of Economic Advisers, and is a specialist in macroeconomics and how the FOMC sets monetary policy. (Of course, I’d also be happy with a Romer appointment in 2022 under a second term Clinton administration.)

Secondly, I would suggest that you [Felix] tone down your advocacy. Many of us would like Janet Yellen to advance to FOMC chair, but if it becomes a matter of shrilly denigrating Summers while advocating Yellen, Obama and the people in the White House may wisely back off Summers only to choose someone else. The Syria retreat was a surprise, but it’s not necessarily the prerogative of this administration to buckle to outside pressure. They like knowing they’re right and not being coerced into action, so Obama may well decide not to “cede power” to outside activists when he decides to pick Don Kohn. I think this is an important suggestion because of how the World Bank selection process went down, and I’ve seen you go to the mattresses only to be disappointed.

Thirdly, I want to take issue with the idea that the FOMC is above politics. It’s not really true. There is politics everywhere, and when we say “above politics”, we are usually acceding to the fact that someone lost and everyone agrees with the new regime. This, of course, is the motivated reasoning powering the McConnell strategy of opposition to all things Obama: recognize that it very well could have worked even better than it has. I mean, with fierce opposition, Republicans battled the recovery down to 95% for the rich and their own health care bill from the 1990s. That’s a win. The Supreme Court is “above politics”, yet Republicans have been lucky enough to turn it from activist liberal to activist conservative and have appointed more judges to all courts as well as more extreme conservatives to replace outgoing Dem appointments or ideologically moderate Republicans.

In this case, a FOMC that is “above politics” means Democrats rolling over to ratify Republican values and desires. And that’s neither right nor above politics, since Republicans don’t do it. The Fed is tasked to maintain stable prices in an economy with maximal employment and moderate long-term interest rates. We haven’t been targeting maximal employment since the 1970s, save for a brief period in the late 1990s. To the extent that political independence means the Federal Reserve does not make monetary policy to benefit or harm certain politicians or parties and does not better the economy more during election years, I approve of an independent central bank. But to the extent that the actual policies of the Federal Reserve ignore the realities and material situations of 300 million Americans to cater to the whims and preferences of the richest few million Americans who are likely to have more money tied up in the Federal Reserve System, I cannot countenance so-called “political independence”. If the Fed and its chairman can’t deliver on the dual mandate, the president ought to appoint people who can. I recognize that Republican presidents may not agree, but if that’s the case they should prevail upon the American people to eliminate the full employment part of the dual mandate rather than deliberately appoint derelict Fed governors (paging Greenspan …)

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By: SadPaulRyan http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48087 Sun, 15 Sep 2013 23:42:55 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48087 A few things.

Firstly, I’ll put my cards on the table that I would prefer a Janet Yellen nomination, just based on the amount of time she’s spent accruing relevant experience and her prescient dovish advocacy. The only concern I have about her is age, since she’s 67 and a Republican successor could use that excuse when deciding not to reappoint. For that reason, then, I would suggest appointing Christy Romer as a close second, as she’s 54 has experience working directly alongside Summers and Obama as the leader of the Council of Economic Advisers, and is a specialist in macroeconomics and how the FOMC sets monetary policy. (Of course, I’d also be happy with a Romer appointment in 2022 under a second term Clinton administration.)

Secondly, I would suggest that you [Felix] tone down your advocacy. Many of us would like Janet Yellen to advance to FOMC chair, but if it becomes a matter of shrilly denigrating Summers while advocating Yellen, Obama and the people in the White House may wisely back off Summers only to choose someone else. The Syria retreat was a surprise, but it’s not necessarily the prerogative of this administration to buckle to outside pressure. They like knowing they’re right and not being coerced into action, so Obama may well decide not to “cede power” to outside activists when he decides to pick Don Kohn. I think this is an important suggestion because of how the World Bank selection process went down, and I’ve seen you go to the mattresses only to be disappointed.

Thirdly, I want to take issue with the idea that the FOMC is above politics. It’s not really true. There is politics everywhere, and when we say “above politics”, we are usually acceding to the fact that someone lost and everyone agrees with the new regime. This, of course, is the motivated reasoning powering the McConnell strategy of opposition to all things Obama: recognize that it very well could have worked even better than it has. I mean, with fierce opposition, Republicans battled the recovery down to 95% for the rich and their own health care bill from the 1990s. That’s a win. The Supreme Court is “above politics”, yet Republicans have been lucky enough to turn it from activist liberal to activist conservative and have appointed more judges to all courts as well as more extreme conservatives to replace outgoing Dem appointments or ideologically moderate Republicans.

In this case, a FOMC that is “above politics” means Democrats rolling over to ratify Republican values and desires. And that’s neither right nor above politics, since Republicans don’t do it. The Fed is tasked to maintain stable prices in an economy with maximal employment and moderate long-term interest rates. We haven’t been targeting maximal employment since the 1970s, save for a brief period in the late 1990s. To the extent that political independence means the Federal Reserve does not make monetary policy to benefit or harm certain politicians or parties and does not better the economy more during election years, I approve of an independent central bank. But to the extent that the actual policies of the Federal Reserve ignore the realities and material situations of 300 million Americans to cater to the whims and preferences of the richest few million Americans who are likely to have more money tied up in the Federal Reserve System, I cannot countenance so-called “political independence”. If the Fed and its chairman can’t deliver on the dual mandate, the president ought to appoint people who can. I recognize that Republican presidents may not agree, but if that’s the case they should prevail upon the American people to eliminate the full employment part of the dual mandate rather than deliberately appoint derelict Fed governors (paging Greenspan …)

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By: Jake987 http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48086 Sun, 15 Sep 2013 22:22:32 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48086 You sir are an idiot. Think about it….. citing political reasons to support rejecting Larry Summers for Fed Chair because it should be an apolitical position.

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By: Kyung http://blogs.reuters.com/felix-salmon/2013/09/15/summers-over/comment-page-1/#comment-48085 Sun, 15 Sep 2013 21:16:33 +0000 https://blogs.reuters.com/felix-salmon/?p=22494#comment-48085 When the FED is the Fourth Branch of Government then it is and should be political.
Private sector profits should bit rule over the rights of the people to control their government and their lives.

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