Tuesday, July 21, 2009

Summers Urges Banks to Lend More, Says Growth Pace ‘in Doubt’



Larry Summers is supposed to be this "brilliant genius," but I guess he's too smart to understand simple, common sense things like the fact that banks are businesses and need a decent economy where people have jobs, hello!, in order to make loans.

If Summers wants to force banks to make loans then he should recommend nationalization of the banks. Then the government could lend money to whomever it wants, in any quantity, under the guise of it being done through "banks."

That's basically what happens in China and guess what...lending is blowing through the roof.

Summers already believes that the U.S. must become and export nation to grow the economy and "compete" with China, so he might as well go all the way and use the same banking model--nationalized banks.

2 comments:

Pentagron said...

Summers is a real disappointment. It is discouraging that he has so much influence with the president when people like Nobel Laureate Joseph Stiglitz are ignored.

Please read the excellent article by Michael Hirsh that just appeared in the July 18 issue of Newsweek ("The Most Misunderstood Man in America"):

http://www.newsweek.com/id/207390

Let's rally to have Stiglitz given a seat at the table!

Mike Norman said...

Yes, agreed! All this Summers' adulation is incomprehensible. Then again, he's Rubin's protege and all the Rubin adulation was just as incomprehensible.