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Larry Summers So Brilliant He Forecast the Financial Crisis After It Started!

Seriously, you can’t make up stupid like John Heilemann’s article in NYMag:

Yet Summers has more than his share of foes, and not just among feminists. Though he was prescient about the financial crisis, forecasting it last fall…

Dude, at that point the crisis had already started. These last couple months are part of a crisis that has been going on for closing on 2 years. Larry Summers ran up to the barn door while the horses were streaming out and said "I think we have a problem". Now admittedly, he had enough brains to recognize there was a problem when it was happening, which is more than some economists can say, but his foresight was no such thing and there are plenty of people who can say they forecast it years before he did.

What else? Is he the best economic mind in the Democratic party? Well, no. After all, there are plenty of people who actually predicted the financial crisis in the Democratic party. That gives them a better record than him. Sure, he’s a very competent technical economist, he’s written some good papers, but in a policy job understanding the consequences of policy actions is rather important. And when he both didn’t call the financial crisis ahead of time and pushed for deregulation over the voices of people wiser than him screaming "this is a bad idea", he proved that, in fact, he doesn’t understand the consequences of the policies he espouses.

Brains aren’t the same thing as good judgment, and while Summers may be smart, I am aware of no evidence that he is wise or even has any common sense.

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Ian Welsh

Ian Welsh

Ian Welsh was the Managing Editor of FireDogLake and the Agonist. His work has also appeared at Huffington Post, Alternet, and Truthout, as well as the now defunct Blogging of the President (BOPNews). In Canada his work has appeared in Pogge.ca and BlogsCanada. He is also a social media strategy consultant and currently lives in Toronto.

His homeblog is at http://www.ianwelsh.net/

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