Yves Smith over at Naked Capitalism has a telling reason why Larry Summers should not be made Fed chairman:
The man’s overconfidence in his own financial and economic abilities caused Harvard to gamble with both its endowment and its operating budget, and the resulting trainwreck cause both giant losses and extensive budget cuts. In addition, Summers was unable to listen to others, including his own investment experts.
Add to that his track record on deregulation, leadership, and too-big-to-fail, and it’s obvious that Summers would almost be the worst choice possible.
And yet, his name is being floated. Why? Because he is buds with the bankers, because he has an extensive resume, and because the kewl kids inside the beltway want one of their own to sit in that chair.
Fortunately, a number of senators are asking Obama to look at Janet Yellen, and opposition to Summers is growing. Let’s hope it grows far enough and fast enough to stop this misbegotten appointment.