Summers: Banks Are "Unintended Beneficiaries" Of The Bailout

[SlowDownFast]

Summers: Banks Are "Unintended Beneficiaries" Of The Bailout

The Huffington Post | Ryan McCarthy
First Posted: 10-22-09 05:04 PM | Updated: 10-22-09 06:42 PM

For Lawrence Summers, the president's economic adviser, the financial crisis is kind of like a military battle. Buried in this Wall Street Journal about the disconnect between Wall Street and Main Street, is a rather odd quote from Summers in which, by way of metaphor, average Americans are just collateral damage in the economic crisis.

"Just as in war," Summers said, "there are unintended victims so, too, in economic rescues, there are unintended beneficiaries."

It doesn't take much thought to surmise that the "unintended beneficiaries" are Wall Street banks like Goldman Sachs and JPMorgan, which both recently reported robust profits as the larger economy continues to languish.

But, as the stock market continues on its rally, the Obama administration is facing increasing scrutiny for using the $700 billion TARP program to save Wall Street while neglecting, well, every other street in America.

More context from the WSJ:

So was the Bernanke-Paulson-Geithner-Summers strategy a flop? Was $700 billion to shore up the banks and $787 billion in tax cuts and stimulus spending misconceived or insufficient?

The explicit strategy was to stabilize banks and financial markets first because Mr. Bernanke and Bush and Obama administration officials saw that as an essential prerequisite to reviving economic growth. No credit, they said, means no jobs.

read more:
http://www.huffingtonpost.com/2009/10/22/summers-banks-are-uninten_n_330741.html?show_comment_id=33316835

[kenny blankenship]

1. Unintended comedy-

so often the best kind!

[Oregone]

2. Who would of ever thought?

:rofl:

[Ruby the Liberal]

3. "Unintended" Oh, no, Mr. Summers

This is exactly what you intended to happen, you prick.

Thanks for the repeal of Glass-Steagall. Hope its working out well for you and your stock portfolio.

[FiveGoodMen]

4. What a load! That was the whole point of the exercise.

[Birthmark]

5. Who could have imagined...

...that if we gave the banks a few trillion bucks that they'd actually benefit?

I want two of whatever he had for lunch! :party:

[Angry Dragon]

6. So this guy is an advisor

If I understand correctly they had no idea what the outcome was going to be but do it anyway??

I am still waiting for transparency and a new way of doing things.....I hope I do not have to wait too long

[DJ13]

7. Bullshit

Thats like saying the unemployed are unintended beneficiaries of unemployment benefits.

[Raster]

8. I love a good "Bullshit". Thank you.

[glitch]

9. Astonishing that anyone finds this man credible.

The people who keep hiring him should explain themselves in statements that don't include "he's a great guy, he belongs to my club, he drives a mean golf cart".

[IrateCitizen]

10. By "the people who keep hiring him" are you referring to Obama?

Best not voice such questioning and dissension within earshot of some on these boards. They may come knocking on your door late at night in order to question your motives....

[glitch]

11. You betcha. But he's not alone, also Harvard and Clinton.

Exactly what are Summers' successes? (this question is not directed at you, it has to be rhetorical). And high positions he's held and mucked up don't count.

He must have a fantastic golf game.

[notesdev]

16. it's generally safe over here in economy

just don't voice unapproved thoughts in general discussion or one of the other, more emotionally charged forums or you'll get gang raped by mourning Michael Jackson fans

[mule_train]

12. geithner and paulson did NOT INTEND for the banks to benefit from their mistakes

it's all a big misunderstanding *

* when a corporate person says midunderstanding, it means they meant to screw you, and now they're lying about it

[mule_train]

13. why did Obama pick Geithner and Summers?

the moment he did, i knew what kind of 'change' we were in for, and it didnt leave me with much 'hope'

[mule_train]

14. bailout was a robbery of fascism in a dictatorship

how else can you explain it?

[notesdev]

15. Either he's naive or he's complicit

either way, why does Obama take advice from this loser?

[westerebus]

17. That's like asking why...

did my wife leave me for that old guy with all that money? Oh, right,the sex is better. :P

[mule_train]

18. 'Obama's a great guy, it's just his underlings that are the problem'

oldest scam in the world

a happy reassuring face with nasty henchmen