NICHOLS: In an Economic Democracy, Stiglitz and Reich Would Be Contenders for Fed Head
Sen. Bernie Sanders has written the president and urged him to pick someone like Nobel Prize winner Joseph Stiglitz or Robert Reich to head the Fed instead of his rumored first choice, Larry Summers, who pushed for the disastrous financial deregulation in the 90s, and browbeat regulators who might have lessened the disaster by actually enforcing the laws that were left.
Banks and Wall Street are the real power in America as evidenced by all the policies that don't change even when we change the party of the resident of the White House.
Obama could take a small step toward economic democracy by not letting the economic terrorists on Wall Street pick one of their loyal servants to head the Federal Reserve.
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Declaring that its time for new leadership at the Federal Reserve and a new approach to our troubled economy, Sanders has identified Nobel Prize-winning economist Joseph Stiglitz and former US Labor Secretary Robert Reich as excellent candidates to replace Chairman Ben Bernanke when the chairman finishes his term January 31.
We need a new Fed chair who will act with the same sense of urgency to combat the unemployment crisis in America today that has left 22 million Americans without a full time job, argues Sanders. To that end, Sanders rejects Summers as a contender, writing to President Obama that it would be a tragic mistake to nominate anyone as chair of the Fed who continued those failed policies. Instead, we need a new chair who will have the courage to hold Wall Street accountable for their fraud, recklessness and illegal behavior, and stand up for the needs of ordinary Americans.
But Sanders also recognizes that, in the race for the Fed chairmanship, progressives should have a contender. Or, perhaps, two.
http://www.thenation.com/blog/175511/economic-democracy-stiglitz-reich-would-be-contenders-fed-head
elleng
(130,732 posts)as Alan Binder did.
http://online.wsj.com/article/SB10001424127887324564704578630352671161208.html
Jefferson23
(30,099 posts)but that was the end of it. It was disappointing to see Summers and Geithner included in his team.
Flash from the past:
Chasing Stiglitz
Dec 3, 2008 7:00 PM EST
http://www.thedailybeast.com/newsweek/2008/12/04/chasing-stiglitz.html
K&R
yurbud
(39,405 posts)Jefferson23
(30,099 posts)Bill USA
(6,436 posts)Thanks for the link to article on Stiglitz.
recommended.
Jefferson23
(30,099 posts)You're very welcome for the link.
adirondacker
(2,921 posts)would be the best to fix it". I ate those words and thoughts.
KoKo
(84,711 posts)up to the Bush Gang and Republicans. Even in his second administration (when he should have been free to go a different path) he's back at it again with the Summers support. Even defending him when some in Senate and even some on Wall Street thought Summers would be a poor choice since he was so involved in the deregulation that helped cause the Wall Street meltdown and has made sexist comments and had problems managing the Harvard Endowment Fund.
Jefferson23
(30,099 posts)team, than to include him. Makes no sense.
Another flash from the past:
Harvard ignored warnings about investments
Advisers told Summers, others not to put so much cash in market; losses hit $1.8b
By Beth Healy
Globe Staff / November 29, 2009
http://www.boston.com/news/local/massachusetts/articles/2009/11/29/harvard_ignored_warnings_about_investments/
KoKo
(84,711 posts)He's such a terrible pick for Obama and for him to go after "Huff Post" (that I rarely visit because of all the "Ad Porn" still means that he was feeling guilty or wounded and lashed out.
Not Good.
yurbud
(39,405 posts)in a real democracy where voters had an effect on the actions of those they vote into office.
Appointing Summers to anything is the economic equivalent of getting a Lewinski on the White House lawn and flipping off anybody walking by.