It isn't according to the New York Times. An article discussing Timothy Geithner's prospects for being approved as Treasury Secretary, notes that Larry Summers, President-elect Obama's National Economic Adviser, would have drawbacks as a pick for Treasury secretary: "He had clear Clinton connections when the “change” campaign was trying to limit those ties. Mr. Summers also was known to have a sometimes difficult personality, and his troubled tenure as president of Harvard University had left some women’s and minority groups bitter and posed potential confirmation problems." Summers was associated with the high dollar policy that led to the large trade deficit, the policy of ignoring asset bubbles as not being an issue of concern, and the policy of one-sided financial deregulation under which banks were allowed to do pretty much whatever they wanted under the security blanket of the government's too big to fail doctrine. Presumably, Summers track record was also a drawback in Obama's eyes --- sort of like a batting average under 100 would be a drawback for a leadoff hitter -- but this article suggests that it was not an issue. Either this article is hugely misrepresenting Obama's decision-making process or it is missing an enormous story about how Obama didn't bother to consider past performance in the selection of top economic advisers.
--Dean Baker
