Larry Summers is the Latest Sign That Fall Will Bring Joy to Fatcats, Pain to the Rest of Us
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Wall Street will be as happy with Summers in Bernanke’s chair, as they were when Summer’s replaced Robert Rubin as Treasury Secretary under Clinton, days after Congress passed the Financial Modernization Act that repealed the last remnants of the Glass-Steagall Act, and present for Clinton's signing ceremony. Plus, when Hillary Clinton runs for president, she will need all of Rubin’s circle of campaign contributors. What better way to secure them, than to also have an old friend that understands their need to remain ‘globally competitive’ at the Fed? Summers, fresh from a Citigroup-arranged, Kuwait Investment Authority sponsored May talk in Kuwait, would also keep relations with the Middle East sweet for his banker friends.
Obama’s argument for Summers, after he retrieves his foot from his mouth regarding Syria, will be continuity, just as it was for Bernanke’s reappointment, and as it was Bush’s argument for Bernanke after Alan Greenspan. Continuity is a big theme with Congress and with bankers, too. Ergo.