Samuelson Disputed Nephew Summers' Praise for Milton Friedman
(p. A4) [Uncle Paul Samuelson and nephew Larry Summers] clashed over the fate of struggling mortgage giants Fannie Mae and Freddie Mac, which were bolstered by a government backstop in July 2008 and later taken over completely by the U.S. Treasury.
Mr. Samuelson found "strange and harmful" his nephew's skepticism about the government backstop for the firms. Mr. Summers, a longtime critic of the two firms, wrote back that shareholders and management of Fannie and Freddie didn't deserve taxpayer support.
Friction had emerged earlier in 2006, when Mr. Summers praised the late Mr. Friedman in a New York Times column. Friedman was "the most influential economist" of the second half of the 20th century, Mr. Summers said.
"For your eyes only," Mr. Samuelson wrote to his nephew of Mr. Friedman, "I had to grade him low as a macro economist" and "stubbornly old fashioned."
For the full story, see:
JON HILSENRATH. "A Close Bond and a Shared Love for 'Dismal Science'; Correspondence Between Famously Brash Summers and His Uncle, a Nobel Economist, Reveals Flashes of Humility and Tenderness." The Wall Street Journal (Sat., September 14, 2013): A4.
(Note: bracketed words added.)
(Note: the online version of the story was updated on September 15, 2013 and has the title "Letters Show Little-Known Side of Summers; Correspondence With Uncle, a Nobel Economist, Reveals Flashes of Humility and Tenderness.")