Who Will Replace Summers?

Excuse me if I don't get excited about Anne Mulcahy replacing Lawrence Summers as director of the National Economics Council. The business community feels more comfortable with Mulcahy because she is the former CEO of Xerox Corp. Mulcahy has also served on the Board of Directors of the Washington Post, Johnson & Johnson, and Citigroup. She certainly has an impressive business resume. However, there are bankers and economists who have a better nuts and bolts understanding of the economy.

President Barack Obama is not going to select a progressive. Laura Tyson is on the shortlist. Tyson is an economic realist. In Bob Woodward's book "The Agenda," Tyson was not afraid to bring up bad news in the Clinton White House. Obama doesn't another NEC director more conserned with access and politics than good policy. Tyson would be a good fit for the job. The question is does Obama want to hear what Tyson has to say.

Other candidates on the shortlist Diana Farrell and Ann Fudge.

Update: Brad Delong proposes that Tyson become Treasury Secretary and Tim Geithner become the director of the NEC. Delong also gives Summers underserved praise. Summers is Delong's mentor.