Larry Summers Messed up Harvard. Now the Country

Harvard is leading the pack again, as it always does. This time it's very bad news. It's huge endowment, which it depends on for a major part of its annual operating expenses, has lost a whole lot of billions. And, while President of Harvard, Summers played a very active role overseeing and steering the university's investments. And, he did a terrible job. By any count, Harvard's endowment has lost somewhere between 30% to 45%, and the latter is more likely.

Harvard is leading the pack again, as it always does.  This time it’s very bad news.  It’s huge endowment, which it depends on for a major part of its annual operating expenses, has lost a whole lot of billions.  And, while President of Harvard, Summers played a very active role overseeing and steering the university’s investments.  And, he did a terrible job.  By any count, Harvard’s endowment has lost somewhere between 30% to 45%, and the latter is more likely.

 

In one case related to a major expansion, Summers locked the university into a fixed interest rate that is now so high that it is forcing the university to work overtime trying to figure out how to kill a long awaited new expansion and building project.  The facts are simple, Harvard is cutting costs, freezing salaries and is in more trouble than they yet realize.  And, they owe it all to Summers.

 

Well, we are now watching Summers do his magic with the economy.  And, by all indications, he is again doing terribly.  His contributions to the Spending/Stimulus Bill are totally disappointing, especially as he promised so much more.  His participation in Obama’s ridiculous budget that is guaranteed to kill the country is also quite real and quite disappointing.  If Obama is counting on his counsel and direction, and it sure looks that way, Summers will destroy America’s economy faster and even more completely than he did Harvard’s. 

 

It is not very comforting to know that the two key players in Obama’s economic team are a tax evader and a failed finance and investment manager.  Pretty impressive Obama!   And, pretty bad news America!!!!

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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