Lawrence H. Summers, President Obama’s former chief economic adviser who has returned to his previous role as a professor at Harvard, said that exacting a toll from creditors could constrain future growth by discouraging future investments.No one?
“No one is satisfied with the efforts to reduce foreclosures and support the housing market,” he said. “The barrier to doing more has not been ideology or any solicitude for the financial sector, but concern about the adverse effects of inducing nonpayment by homeowners or reducing the flow of new mortgage credit.”
Mr. Summers argues instead that the government should focus on tax cuts and directed spending to stimulate private spending and investment, policies for which there is little political appetite.
Sunday, August 07, 2011
Larry Summers Decides, What the Hell,
No Point in Pretending to be a Liberal Any More
Squeeze 'em until the pips squeak: