Former Treasury Secretary and former Harvard University President Larry Summers has pulled his name for consideration by Barack Obama for Chairman of the Federal Reserve System. I guess Larry and Barry decided that at the end of the day, Larry had too much “baggage” and a confirmation by the similarly corrupt and incompetent U.S. Senate might have been difficult.
One name also being considered is Janet Yellen, Vice Chairman of the Fed’s Board of Governors.
Robert Wenzel had this post on clueless Janet Yellen’s economic forecasting abilities. And today Wenzel points to a post by Zero Hedge which recalls a NYT article on Yellin’s testimony before a Financial Crisis Inquiry Commission hearing, in which she stated: “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.”
Meanwhile, economist Walter Block wrote this article including many links to speeches and articles by Austrian school economic analysts who had been forecasting the 2007-08 economic meltdown for years prior to that.
And for a thorough explanation of the collapse, Tom Woods wrote the book, Meltdown: A Free Market Look at Why the Stock Market Collapsed, the Economy Tanked and Government Bailouts Will Make Things Worse.
Janet Yellen might consider reading that book to get an actual understanding of what happened and what led up to the meltdown. She might also consider reading these resource pages by Dr. Woods, on Austrian Business Cycle Theory, and on Sound Money.
Perhaps Obama might consider appointing Tom Woods or Walter Block as Chairman of the Fed. (Or Ron Paul.)
Or better yet, just leave it unfilled. We’d be better off.