Obama's digging in deeper on a bad argument in support of Larry Summers.

I don't think President Obama's getting it.  After all, if your own party doesn't like one of your potential choices, but you're nonetheless keeping that person on the table of options, isn't that a sign that you're being pig-headed?

Today he vociferously supported Larry Summers behind a closed-door meeting with Democrats.  He called Summers the "Rock of Gibraltar" when it came to the discussion over the stimulus.

But the problem is:

• Summers was the person who nixed the larger stimulus figure that was first proposed by Christina Romer, because he felt that it was DOA in Congress.  So instead, what did we get?  Less than half of what Romer proposed, or as I like to call it: Crap.
• He's done this before: supporting the repeal of Glass-Steagall; he still has no regrets, by the way.
• And he was also on the wrong side of regulating derivatives -- you know, the stuff that was at the center of the largest bubble explosion, since The Great Depression.
• Dude got kicked out of the presidential suite at Harvard, not just because people didn't like his managerial style, but because of $1B in losses resulting from screwed up investment decisions. 

Do you really want the next Fed Chairperson to be the Rock of Gibraltar...on the Titanic?

"Captain, we are headed towards a giant iceberg!"

"Nonsense!  Maintain course and increase speed!"

It's not that I think Summers will suddenly change course and stop QE and raise rates -- he's still a dovish guy, after all.  But I think he's going to eventually fuck up badly (yet again).