Obama’s Domestic Policy Formed From Necessity

By Joseph Russell- Talk Radio News Service

National Economic Council Director Larry Summers highlighted the Obama Administration’s plan to improve the economy during a speech to the Council on Foreign Relations’ annual conference in New York.

Summers emphasized that the President has been absolutely clear that “the actions we take are those of necessity, not choice.”

Summers also said, “the President has been unambiguous. . .that any intervention goes with, rather than against, the grain of the market system. Our objective is not to supplant or replace markets. Rather, the objective is to save them from their own excesses and improve our market-based system going forward.”

Summers outlined the President’s position to support additional financial regulatory reform toward individual institutions. While Summers admitted the details are complex and “can blind sophisticated observers to the obvious,” he echoed Obama by saying such reform is necessary to overt future financial crises.

While no examples of possible legislation were given, Summers said the center of the financial crisis was, and continues to be, excessive leverage and systemic risk by banks and other financial institutions. He noted the administration will continue to move forward with its domestic agenda,
even though the effects of these policies may not be known for up to
four years.