Summers and Geithner are in charge of the auto bailout means, of course, that Summers is in charge of the auto bailout. Yes, as Naked Capitalism says, it looks like they are executing a land grab. Geithner is over his head of course, but as Treasury Secretary, he's got two roles, one he's done and will do brilliantly, the other not-so-much. The role he's played brilliantly, of course, is in letting boss Larry Summers walk all over him, which he'll continue to do. He's been shaky so far in being Larry's public face, and wasn't chosen for this quality so much, more for his weak, impish qualities.
Knowing Larry, it's not hard to imagine what he thinks -- that governments should not pick winners & let the big 3 go thru chapter 11. Actually, in this case, this is also what Joseph Stiglitz thinks, so Summers ideology may in fact drive him in the right direction on the auto companies.
Still, it's depressing to see Larry Summers appropriate even more power for himself.
In Defense of the Conventional Wisdom
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