More on Ron Susskind and Larry Summers
Posted on September 19th, 2011 in Uncategorized | 11 Comments »
The Times today reviews Ron Susskind’s history of the economic policymaking of the Obama administration, and boy, does it sound brutal to Larry Summers.
Summers, according to the Times, is “characterized by colleagues in these pages as a bullying know-it-all who acted as a kind of gatekeeper to the Oval Office on things economic.”
Summers addressed that portrayal in an email to the Washington Post the other day:
Summers, who left the administration last year, said, “The hearsay attributed to me is a combination of fiction, distortion, and words taken out of context. I can’t speak to what others have told Mr. Suskind, but I have always believed that the president has led this country with determined, steady and practical leadership.”
So…these are two very different impressions. One Larry Summers is gracious, respectful, and fair. The other: bullying know-it-all.
Which one is more accurate? (What do you think?) Let me put it this way: It would be inconsistent of Summers to be gracious, respectful and fair.
Sam Spektor posted a terrific link to a New York magazine conversation about the book featuring editor Adam Moss and columnist Frank Rich.
Here’s Moss:
…Summers is portrayed as an egotistical nut job, single-mindedly determined to get Bernanke’s job; when he doesn’t get it, he goes bananas. He is supposed to be a conduit for the collective advice of the team, but undermines his colleagues, only passing along advice and information that supports his positions. I was kind of stunned how many officials were willing to go on the record against him.
Larry Summers as Fed chair? The most powerful unelected official in the world? America and everyone else dodged a bullet there.
You know, as a general matter I hate to say “I told you so,” or lament that more people have not read one of my books. But anyone who read Harvard Rules could have predicted this outcome with certitude. As I watched Larry Summers try to rise from the ashes of his Harvard ouster in 2007 and 2008, I was alarmed that his PR campaign seemed to be working, and distressed that Barack Obama, so smart in so many ways, was buying it—a tragic mistake.
(It does point up something I’ve noted for years, one of the less-frequently observed but important things to know about Larry Summers, which the Harvard Corporation experienced, but probably wasn’t aware of, in the year 2000: He has a talent for sucking up when he wants to, and can present a highly misleading portrait of himself when he does—a portrait which vanishes the second he gets what he wants.)
Here’s some more Moss:
In the end, nobody’s talking to Summers — not even his crony Geithner. Furious that Geithner didn’t recommend him for Bernanke’s job, he stands Geithner up at a dinner for all the former Treasury secretaries — Summers is the only living former secretary not there. Geithner says, “Larry would rather be in Davos than at dinner with me.” At least according to Suskind, the only person who could stand Summers was Obama, which — in Suskind’s telling — was a misjudgment that had a rather profound effect on the first chunk of Obama’s presidency.
To be fair, Summers would rather be in Davos than have dinner with anyone. (Except maybe Sheryl Sandberg.) So Geithner, who doesn’t sound so great himself, shouldn’t take that personally.
And then there’s the issue of the women in the White House—Elizabeth Warren, Christy Romer and Sheila Bair come to mind—who seem consistently marginalized by Geithner and Summers, perhaps because they’re not particularly interested in bailing out working for the big banks and perhaps because they’re less obsessed with personal power than Geithner and Summers seem to be. For whatever reason, Romer is walking back her remarks now, downplaying the tensions. I wish she’d stick to her guns. There are too many red flags here not to believe that the men on the economic team pretty systematically isolated the women, and given how impressive those women are, and the fact that they represented a challenge to the banks uber alles philosophy of the men, that’s really a loss for the country.
Frankly, I’d rather have an economic team of Warren, Romer and Bair than one of Geithner and Summers.
Of course, as Frank Rich points out, the buck really does stop with Obama, and how do we who admire the man reconcile that admiration with our disappointment at the self-serving, egotistical economists whom he hired and allowed to hijack his economic agenda? (Including, apparently—Jesus, will we never be rid of him—Bob Rubin.)
Here’s Rich;
I have sympathy for [Obama], too, and I have heard him express that (charming and genuinely modest) amazement that he ended up sitting in the White House, the most unlikely president imaginable. His turning to Rubin during the transition — as he hired his economic team — may have been out of some understandable human insecurity. Or was it because he’s too easily impressed by the type of elite he met at Harvard?
Really, he should have read my book…
11 Responses
9/19/2011 8:38 am
I haven’t followed the woes of the Obama economic team all that closely, but I don’t remember hearing Rubin’s name before in this context. Is it really possible that Obama turned to Rubin, and Rubin sold Summers to him, exactly as Rubin had done with the Harvard Corporation? Amazing.
9/19/2011 9:38 am
I hadn’t heard Rubin’s name in this context either…very interested to see what the book says about that.
9/19/2011 9:46 am
See the last two paragraphs, Harry:
http://www.nytimes.com/2008/11/24/business/worldbusiness/24iht-rubin.4.18116856.html?pagewanted=1
I recall seeing Rubin at an Obama press conference along with a bunch of other economists including Volker, in late 2008, I think, before Obama office. By 1/20/09 after this,
http://www.reuters.com/article/2009/01/09/us-citigroup-rubin-idUSN0930738020090109
he wasn’t much to be seen, but obviously continued to be heard, much to our loss
9/19/2011 9:47 am
Make that “before Obama took office”
9/19/2011 9:54 am
That was a correction of a previous one, still being moderated, I guess. Can you get to that, RB?
9/19/2011 9:55 am
There we go. Sorry for all the posts
9/19/2011 10:18 am
No problem, Richard!
9/19/2011 10:19 am
I don’t see what was tragic about the work of Summers specifically. Geithner and others were plenty focused on the banks, and on the truly significant mistake — pivoting too soon away from recovery and jobs — he was on the correct, losing side of the debate, along with Romer. Should we understand that Summers’ appointment was a tragic mistake just because people didn’t get along real well? What difference would it have made if they had?
Summers would be a MUCH better Fed chair than Bernanke, and would be making a real difference right now with more quantitative easing to counteract ongoing deflation.
Glad to be corrected on policy and facts if someone has insights on “where Obama went wrong.”. I think he’s a B+ president, but on the economy he’s got a solid B from me, and might have an A- if he had listened to Summers MORE, not less.
Stopping banking panics is a good thing, people. More accountability would have been nice, but not just for symbolism…
SE
9/22/2011 1:27 pm
Obama fotgot the consumer. The group that spends and votes. Big mistake
9/23/2011 6:22 am
All of this makes me curious about the circumstances surrounding Harvard’s odd decision not to grant Romer tenure a year or two back. Econ seemed to be recruiting she and her husband, but only he got through the review. Seems strange, given her stature. Did this come back into play at the White House? Was there already some beef between she and Summers that tied in to Econ’s strange ditherings? (Why in the world would they recruit a couple and then retract their interest in one of them?)
1/11/2024 9:26 pm
A few points:
1. Larry “no-chin” Summers was the one who slammed Brooksley Born when she wanted to regulate derivatives back in the 90s. What a great man of the people! Many of you idiots lost money, jobs, and investments because dear of old Larry and his boyfriends. So don’t pretend that supporting Summers is oh-so-conservative and smart. Summers is NO conservative-he is a bank prostitute who can use fancy words. Nothing more.
2. The (generally East Coast) establishment may pretend to be liberal and value the rights of the individual but it does not. It values the rights of the powerful and wealthy to keep their power and wealth. It is not *your* friend. To them, if you even register at all, you are a servant whose job is to work to pay these people tribute.
3. Re. women and economics-are you crazy? Of course Summers is a misogynist. No-chin Summers and his boyfriends (Geithner, et al) think that the proper place for women is the brothel. This a generally held opinion of the bankers (this is cleverly concealed in court documents!). Just look at their leadership-100% male. That is no accident. The power elite “alpha males” generally hate and want to control women-they sure as hell don’t want to have to take their advice on anything like economics. So there is no shock that women, no matter how smart, will not achieve much on a national level. The US is a very misogynistic country. Period.