Arianna Huffington: Larry Summers Should Resign

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Online media mogul Arianna Huffington again criticised Obama economic advisor Larry Summers today, saying that she hopes he resigns.

Huffington said that was her “optimistic scenario,” and that others, like Paul Volcker, would hopefully be able to drive economic policy and financial reform.

On how average Americans are suffering, she said, “I have not seen a single sign that [Summers] gets it.”

Huffington spoke with us after the making the comments during a speech at the Forum for Institutional Investors conference in New York.

Does the White House get the populist frustration over Wall Street returning to big profits?

“Executive compensation is important, but even more important is making sure the incentives and dis-incentives are aligned so that you don’t have rewards that are not coupled with performance,” Huffington said. “That has been the fundamental problem If we allow banks that are too big to fail and if we allow the leverages to exist, that are basically legalized gambling, then there isn’t going to be the kind of reform that this administration plans.”

But, Huffington said, the White House is starting to get it.

“The administration right now is sensing that there’s a shift in the wind. That the losses of jobs, the foreclosures, the credit cards, the bankruptcies — so many people who can’t pay their credit card debts — have led to a populist anger that needs to be addressed before it becomes too difficult to handle.”

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