Summers was a key actor in the Clinton economic team that pushed for bigger and less regulated banks. He was there for the repeal of Glass-Steagall. He was also among those hectoring Brooksley Born, when the then head of the Commodity Futures Trading Commission argued that it would be a good idea to regulate derivatives. And he famously ridiculed as Luddites those warning of the risks of financial deregulation at the Fed’s Greenspanfest in 2005.
Even more important than his role in pushing financial deregulation is the fact that Summers played a direct role in promoting the imbalances from which the economy continues to suffer. The trade deficit was relatively modest through President Clinton’s first term in office, averaging just over 1 percent of GDP.
via http://truth-out.org/news/item/17565-the-return-of-larry-summers
Posted by KWB wandering among the borderlands of the Ether.
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