Monday, September 2, 2013

Larry Summers for Fed Chair?  Not no but Hell no.  In an interview when he was Assistant Secretary of the Treasury and in front of then Senator Tom Daschle, he admitted to not understanding Reserve Accounting.  OK, that's only a technical matter and simply ignorance which can be rectified.  He is a creature of Wall Street and as such will not support the proper banking regulatory regimen required in a Fiat money based monetary system.  That's the reason he should not be Fed Chair.

Janet Yellen, while a liberal Democrat at least understands Reserve Accounting.  She served as an economist at the Federal Reserve early in her career.  She would not have to go back to school to learn how the mechanics of the Federal Reserve.  She would also provide some continuity which the markets would probably find reassuring and favors proper bank regulation.

Which brings me to my favorite, Shelia Bair.  Ms. Bair headed up the FDIC during the Great Recession and was the voice of calm and reason during a difficult time.  She also would be in favor of significant banking regulations and has no ties to Wall Street.  Here's a paragraph from her Wikipedia page.

Prior to her appointment at the FDIC, Bair was the Dean's Professor of Financial Regulatory Policy for the Isenberg School of Management at the University of Massachusetts Amherst, a post she had held since 2002.  She also served as Assistant Secretary for Financial Institutions at the U.S. Dept. of the Treasury (2001-2002), Senior Vice President for Government Relations of the New York Stock Exchange (1991 to 1995), and Research Director, Deputy Counsel and Counsel to Kansas Republican Senate Majority Leader Bob Dole (1981-1988).  While an academic, Bair also served on the FDIC's Advisory Committee on Banking Policy.  Bair also pursued a seat in the U.S. Congress (she lost to 1990 Republican nomination in the 5th Kansas district by 760 votes to Dick Nichols).

Bair began her career in the General Counselo's office of the former U.S. Department of Health, Education and Welfare.  Ms. Bair left the FDIC on July 8 2011, when her five-year term expired.  She became as senor advisor to The Pew Charitable Trusts in August 2011.  She is chair of the Systemic Risk Council, a voluntee effort formed by the CFA Institute and the Pew Chartible Trusts to monitor and comment on regulation.

Unfortunately, this is an appointment by the President, end of story....

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