He created the era of deregulated finance in the late nineties, along with Robert Rubin and Alan Greenspan which has bought us to this current impasse, where we may be staring the death of capitalism in the face. However, in his previous job, as Undersecretary of the Treasury, advising consultants to Yeltsin's reformers in post Soviet Russia, Summers was amongst those who pushed hardcore market reforms, that slashed the government's social expenditure, and sent the lives of millions of Russian pensioners into free fall and early death. If we recall, yes the Soviet economy after the early nineties was in dire need of shedding expenditure, but the length and breadth of expenditure cut was so long and so deep, that beyond non-productive spending in military and foreign Soviet aid, the deeply extensive social safety net of the Soviet economy was torn to shreds, and with no private economy to fall back on, millions of Russians who were dependent on government spending were sent into bankruptcy and an early grave. This was added to the fire-sale, bargain basement privatization of Russia's infrastructure which suddenly created the infamous oligarchs, a collection of wealthy and democratically unaccountable kleptomaniacs, the constant humiliation of Yeltsin's incompetence and boozing, and the extreme privation created by cutting the near maximum of government expenditure. Please remember, in Russia during the mid-nineties Life Expectancy Collapsed. Larry Summers is the part of the reason why. And in response to that shitstorm encircling Russia, a group of upper mid ranking security bureaucrats in the Kremlin decided to ease Yeltsin out with promises of no investigation into the corruption and embezzling Yeltsin and his family were involved in (sound familiar?). In exchange that group of slick, nationalist, intelligent, intelligence operatives would be allowed to govern Russia. Enter Vladimir Putin, to the sound of multiple "Muslim Terrorist" bombs going off all over Moscow in 1999. The Russian experiment in free-market, open politics democracy was wrapped up in favour of a more "managed democracy" with a muzzled media, that we still see trundling along today. A very familiar story for citizens of a currently waterlogged nation in South Asia. And that "managed" democracy is trundling as opposed to it's pre-2003 bumbling, thanks to high oil prices. Thank you Bush Administration and Operation Iraqi Freedom. Sometimes one should be grateful for stupid enemies. We know Vladimir Putin is.
Larry Summers, is in the circle of responsibility for the premature deaths of millions of Russian and the subsequent rise of Vladimir Putin. He peddled the advice that led to the rise of a right wing strongman in a former Cold War superpower. This man is horrible and an idiot.
Source: Comments on ZeroHedge.com
In his current job, what Summers insured was that the financial/banking sector was not reformed, but rather that money was funneled into the system, so that Goldman Sachs, and the few survivors of this catastrophe would emerge even more powerful than before the crisis. Basically, once the dust settled, the surviving banks, which had already been powerful pre-crisis, would emerge untouchable. Anybody hear the threat of Goldman Sachs being nationalized? No you don't? Maybe broken up for its role in the crisis? No? Well that's because Larry Summers has done his job very, very well. For Goldman Sachs and Wall Street.