Going Down

Summers: Economy to Keep Falling

He may have slept through Obama's credit card meeting, but White House Economic Council director Larry Summers is wide awake to the failings of the economy -- which, he says, "will continue to decline" for "some time." On Fox News Sunday the former Harvard president predicted "sharp declines in employment for quite some time this year." Nonetheless, Summers is confident that the Obama administration is on the right path, including with regards to the perpetually troubled banking industry. "The vast majority of banks in the U.S. are well capitalized," he said, despite the fact that "there's work that needs to be done," including raising more capital -- potentially from the government: "We're going to be in a good position to provide the support and set the framework in which the banking system can move along the process of recovery." As for rumors that the Feds are about to push taxpayer-supported Chrysler into Chapter 11 bankruptcy, Summers noted only that "we're monitoring carefully" and that Chrysler's pending alliance with Italian automaker Fiat is "in everybody's interest."