Drumbeat Continues Against Summers, Obama's Economic Team
May 3, 2009 • 5:58PM

Two attacks on the Obama economic team, led by Larry Summers, were posted on the web today. They follow an extensive interview, published on The Women on the Web on April 28, by Naomi Klein, who continues her campaign against Summers, Geithner, and the whole team under the title "The Wall Street Bailout Is the Greatest Heist in Monetary History."

* "Mortgaging the White House" is the title of a column by Bill Moyers and Michael Winship, which was published on truthout today. They argue "that as part of his bending over backwards to support the banks and avoid the losers, he has blundered mightily in his choice of economic advisers." They then blast Geithner (citing the New York Times article) and Summers, comparing them, and as a result, the administration, to Louis XVI.

* James Galbraith posted a commentary reproducing his remarks from an April 3 debate he had with former Majority Leader Dick Armey. He says the crisis has three parts: 1) the idea that "capitalism" is "self-stabilizing;" 2) the person (he nominates Phil Gramm) who repealed Glass-Steagall; and 3) the policy of abandoning state responsibility for financial regulation. He then criticizes the Obama stimulus program for not following that of FDR, which had both the Works Progress Administration of Harry Hopkins, and the Public Works Administration of Harold Ickes.

* Klein's discussion of the development of the crisis is extensive, and can't be detailed here. She charges that the Summers/Geithner plan to bail out the banks "is actually a disguised bailout for the hedge funds." She calls them corrupt. She says "the bailout is so bad that it practically cancels everything else out," and that the result will be a crisis down the road which will be used to justify cutting social security, health care, etc. Summers, she says, "is the gatekeeper.... appears to be keeping people away from Obama. He's defining the terms of the debate." She includes the Summers record with Russia, on derivatives, on women. This is mixed with a lot of leftist ideology, but that's not surprising.