Friday, September 23, 2011

Ron Suskind's Larry Summers problem by Ezra Klein

Good piece by Klein. From what I've heard, the book makes Summers and Obama look better a little bit. (Summers argued for more stimulus. Obama leaned towards the Swedish model and was impressed with Elizabeth Warren.) It makes Orszag look worse. Regarding nationalization of the banks, I thought Obama was undecided but apparently he had the right instincts. At the time I leaned slightly towards the Geithner view that given the fragile state of things, a nationalization could bring about a panic like Lehman Brothers or a Greek default. Better to err on the side of caution but proponents of nationalization had some good points. In hindsight I've changed my view especially given the behavior of bank CEOs and their lobbyists since then.

Was the timing of the release of the book with its portrayal of a mildly frat-house-like White House and the historic ending of DADT a coincidence?

I don't understand why everyone in the book is saying they were misquoted. Maybe at the the time they gave quotes they thought Obama was shoe-in for re-election and now they feel Obama could lose and are feeling disloyal?

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