I’m An Obama Supporter and This Is An Example of Why It Makes Me Sick That Summers and Geithner Are in Charge of Economy

From the Washington Post tonight:

Lawrence H. Summers, one of President Obama’s top economic advisers, collected roughly $5.2 million in compensation from hedge fund D.E. Shaw over the past year and was paid more than $2.7 million in speaking fees by several troubled Wall Street firms and other organizations. …

… But Summers — who, as chairman of the National Economic Council, is a leading architect of the administration’s economic policies and helped shape the response to the global recession — appears to have collected the most income. Financial institutions including JP Morgan Chase, Citigroup, Goldman Sachs, Lehman Brothers and Merrill Lynch paid Summers for speaking appearances in 2008. Fees ranged from $45,000 for a Nov. 12 Merrill Lynch appearance to $135,000 for an April 16 visit to Goldman Sachs, according to his disclosure form. Summers reported donating two fees totaling $70,000, including the payment from Merrill Lynch, to charity.

Is it any wonder that the investment class who brought us this Great Recession and blow up of the U.S. financial system is getting off Scot-free with taxpayer bailouts?  Larry Summers who brought us the repeal of Glass-Steagal.  Tim Geithner who brought us TARP, the original $700 billion bailout.

The point is that there are fundamental problems with what is considered economic activity that delivers real value.  Are creatures of Wall Street the right folks to be deciding what a new economic playing field should look like?  For instance, what limits should there be on securitization?  What should be allowed to be securitized?  Should insurance companies be allowed to sell insurance but not call it insurance so it’s not regulated?  How much is too much leverage?  Etc.

We know what Wall Street’s answers are to these questions.  We know that Summers and Geithner are tools of Wall Street.  So, we know with them as our economic brain trust we’re fucked — unless of course we’re trading, banking or insuring.