Saturday, September 07, 2013

Team Yellen

Considering the ongoing dismal state of our so-called economic recovery, it's rather clear the Fed's monetary policy under Bernake was (as the kids say) all fucked up and bullshit. So now that we got rid of Helicopter Ben, Obama has a clear choice. It's between the Bankster's best friend, Larry Summers or the Bankster's greatest fear, Janet Yellen. Joseph Stiglitz is on Team Yellen. So am I because:
The controversy over the choice of the next head of the Federal Reserve has become unusually heated. The country is fortunate to have an enormously qualified candidate: the Fed’s current vice chairwoman, Janet L. Yellen. There is concern that the president might turn to another candidate, Lawrence H. Summers. Since I have worked closely with both of these individuals for more than three decades, both inside and outside of government, I have perhaps a distinct perspective…

Whoever succeeds Ben S. Bernanke as the Fed’s leader will have to make repeated judgment calls about when to raise or lower interest rates, the levers of monetary policy.

Two elements enter into these judgments. The first is forecasting. Wrong forecasts lead to wrong policies. Without a good sense of direction of where the economy is going, one can’t take appropriate policies. Ms. Yellen has a superb record in forecasting where the economy is going — the best, according to The Wall Street Journal, of anyone at the Fed. As I noted earlier, Mr. Summers’s leaves something to be desired.
Of course, the galling reality is Summers will most probably get the job because, the damnable Boy's Club. This is why we can't have nice things.

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