Larry Summers Cannot Save the Fed and Misspoke About Fed Capabilites
This article was first published at Talkmarkets: http://www.talkmarkets.com/content/us-markets/larry-summers-cannot-save-the-fed-and-misspoke-about-fed-capabilities?post=75263 Larry Summers has spoken once again about secular stagnation on a Business Insider article entitled Larry Summers: the Global Economy Is in Serious Danger. Summers makes an excellent case for why things cannot remain as they are. He is right in saying that stimulus in the form of fiscal efforts is likely needed to expand the US economy. But, there are two points that were contained in the article that make me not trust him anymore than I trusted him when I wrote the article Summers and Roubini Talk Negative Interest Rates, Sound Logic but Uncharted Waters. First of all, I had mentioned that more than anything, Summers worries about and cares about the banks first. Every motive he has, to the best of my observation, revolves around what is good for the banks at that moment. It may not be a long term fix h