Larry Summers on Derivatives
Here’s Larry Summers testifying to the Senate in 1998 about why the derivatives market does not need regulation:
“The parties to these kinds of contracts are largely sophisticated financial institutions that would appear to be eminently capable of protecting themselves from fraud and counterparty insolvencies.”
And this guy is Obama’s chief economic advisor? The same dude who took $5 million + from hedge funds and firms like Goldman Sachs and JP Morgan last year?! He’s obviously quite cozy with the players who caused this thing, and he seems dedicated to riding it out with the same crew.
What the hell is wrong with Obama?
We need change in key economic positions. I voted for Obama, donated to his campaign, and feel utterly violated. Fox in the henhouse doesn’t begin to describe the guys he has appointed thus far. What about somebody like Harry Markopolos as Treasury Secretary? He’s the guy who tried to alert the SEC about Madoff, and seems extremely sharp. He’s analytical, smart, and apparently has some integrity. He’ll never get the job.
FYI, I found the great Summers quote in this article, a must-read by Robert Scheer over at Truthdig.com.








3 Comments
You’re not the only one feeling that way.
Obama has made a number of moves in office that I really like, but I am afraid that his mistakes on handling the financial markets will endanger the rest of the agenda I supported last Nov.
Yeah, the economy is his big gamble. I really don’t know if he realizes how big it is though… He’s getting advice from seasoned and biased gamblers. We need a smart outsider in there ASAP. William K. Black, anyone? Nah, he’s probably too smart, honest, and analytical.
[...] The juicy stuff starts around 7:30. He offers a good overview of how Obama has basically put the foxes in charge of the financial henhouse (ie Larry Summers. [...]