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Hi, Frank. So there's a little commotion about this new book
Confidence Men, by Ron Suskind, which is being published on Tuesday. And as it happens, you and I have actually read it! So let's talk about that this week. To give readers a super-fast overview, it's a book, essentially, about Obama's economic team during his first two years in office. The news of the book, according to some reports, is that Tim Geithner was insubordinate to the president, pursuing his own pro-banker agenda. Or, according to other reports, that Larry Summers was insubordinate to the president, pursuing his own - well, monomaniacal agenda. I'd add that it's also about Rahm Emanuel being insubordinate to the president, just because. Basically, it's about the presidency being hijacked by these three guys. And the guys thing is important because they're pretty awful to women. Anyway, they're the villains. Paul Volcker, Christina Romer, and Elizabeth Warren are the heroes.
Bankers win, America loses. Did I get that right?
Frank: Hi, Adam, and yes, you did! I would point out that among the other heroes are more women (Sheila Bair, Brooksley Born, Maria Cantwell) and at least one man, the Princeton economist Alan Krueger, who also seems to be a serious Suskind source and who has now returned to the White House to succeed Austan Goolsbee and Romer as head of the Council of Economic Advisers. Not that that will do any good. I think the portrait of Geithner is devastating - his countermanding of the president's wishes to make a Wall Street object lesson of Citigroup, his nasty "Elizabeth Warren strategy" to silence and neuter the administration's rare genuine reformer. And yet Geithner is the only member of the original economic team still standing in the White House, poised to countermand any other rare independent voice that might yet speak up, like Krueger's.
Comment: Don't hold your breath. Whatever legislation might get passed, you can bet there will be plenty of loopholes in the fine print.