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  • Purveyor (2633 posts)
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    Summers Warns of Financial-Crisis Risk From Trump Economic Plans

    by Christopher Condon
    January 8, 2017, 12:58 PM EST

    Former U.S. Treasury Secretary Lawrence Summers attacked the policy proposals of Donald Trump on several fronts, saying the president-elect’s plans for deregulation were setting the stage for the next financial crisis.

    “The deregulation in some areas like finance is hugely dangerous,” Summers said Sunday in an interview on Fox News Channel. “Who wants to go back to the era of predatory lending? Who wants to go back to the era of vastly over-levered banks?”

    Members of Trump’s transition team have vowed to dismantle the 2010 Dodd-Frank Act, the principal legislative response to the 2008-09 global financial crisis, although Trump himself has given mixed signals on Wall Street regulation. During his campaign, he railed against Dodd-Frank, which greatly increased restrictions on banks operating in the U.S., but also said he would reinstate a separation between bank lending and securities underwriting, which was removed in 1999.

    Summers, former chief economic adviser to President Barack Obama and Treasury secretary under President Bill Clinton, also took aim at Trump’s protectionist rhetoric. That’s already caused a plunge in the Mexican peso, giving Mexican manufacturing an extra advantage over U.S. competitors.



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10 replies
  • Skink (559 posts)
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    1. But fine go ahead and gut Glass Steigal

    • The Crone (3157 posts)
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      2. Yeah really. The Summers and Geithners-types

      Made sure that Glass Steigal was not re-instated. Because it actually had the teeth to let  the middle and lower classes keep some of their money and have an economy that occasionally bent their way.

      "Let us not seek the Republican answer nor the Democratic answer but the right answer." John F. Kennedy   America is the only country that has real   lemons in its furniture polish, and artificial lemon flavoring  in its lemonade!
  • FanBoy (7985 posts)
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    3. "he would reinstate a separation between bank lending and securities"

    which was supposedly the cause of the last financial crisis…the withdrawal of the separation, that is…

    so take away dodd frank and reinstate what was there before the crisis, which was supposedly better…

    seems like a 6 of one thing…

  • Fasttense (1606 posts)
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    4. Yeah, he was a big supporter of free trade deals and the TPP

    He’s probably pissed because Trump trashed it.

    • Populist Prole (743 posts)
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      5. Yeah that's pretty much it

      Over the past several days the talking and typing media heads used Trump’s impolitic bombast as headliners, but what most of them were freaking out about was the attack on their precious free trade. It’s a drumbeat now.

  • FanBoy (7985 posts)
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    6. summers, shill for hedge funds, goldman, morgan etc; clinton and

    Obama admins, world bank

    Indeed, as a member of President Clinton’s Working Group on Financial Markets, Summers, along with U.S. Securities and Exchange Commission (SEC) Chairman Arthur Levitt, Fed Chairman Greenspan, and Secretary Rubin, torpedoed an effort to regulate the derivatives that many blame for bringing the financial market down in Fall 2008.[20]

  • jwirr (3849 posts)
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    7. Mr. Summers who was it who put us into that era in the first place. What he

    is really afraid of is that we will not forget it. And if those policies make this an even worse mess the second time around that there will be a stronger bill than the Dodd-Frank bill. One that addresses the seriousness of the real problems.

    • Hydra (375 posts)
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      9. Something even stronger than that will be required

      The Banks control the people who are supposed to be regulating them. They currently hold all the cards but one.

      • jwirr (3849 posts)
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        10. Totally agree but that is not what Summers wants.

  • Hydra (375 posts)
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    8. Summers is concerned about deregulation now?

    Sounds like a fox getting mad that the wolf is now guarding the henhouse.