Summers Sees Shift from Overconfidence to Seeking Confidence

Former U.S. Treasury Secretary Larry Summers said Tuesday that current global conditions that contributed to Monday’s selloff represent the type of moment when surprises such as the Asian financial crisis or subprime mortgage bust can occur.

“I’m not prepared to predict that we’re in the midst of a crisis,” he told CNBC’s “Squawk Box.” “But certainly the risks feel greater now than they have at moments in the past and I think the orientation of policy, which had been toward resisting overconfidence, now has to again shift toward providing confidence.”

Summers said he sees potential for “significant instability” and “substantial risks” associated with current conditions.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza