I'm sure the only reason Obama likes Summers and Rahm is their hedge fund pedigrees. Uh-huh.

Don't blame you for being cynical, though. Summers is a smart guy, but he seems to have no love for those he is supposed to be helping with his supposed economic acumen.

A little context for your snippet of Summers' speech, which appears toward the end in italics:

It does appear that on many, many different human attributes-height, weight, propensity for criminality, overall IQ, mathematical ability, scientific ability-there is relatively clear evidence that whatever the difference in means-which can be debated-there is a difference in the standard deviation, and variability of a male and a female population. And that is true with respect to attributes that are and are not plausibly, culturally determined. If one supposes, as I think is reasonable, that if one is talking about physicists at a top twenty-five research university, one is not talking about people who are two standard deviations above the mean. And perhaps it's not even talking about somebody who is three standard deviations above the mean. But it's talking about people who are three and a half, four standard deviations above the mean in the one in 5,000, one in 10,000 class. Even small differences in the standard deviation will translate into very large differences in the available pool substantially out. I did a very crude calculation, which I'm sure was wrong and certainly was unsubtle, twenty different ways. I looked at the Xie and Shauman paper-looked at the book, rather-looked at the evidence on the sex ratios in the top 5% of twelfth graders. If you look at those-they're all over the map, depends on which test, whether it's math, or science, and so forth-but 50% women, one woman for every two men, would be a high-end estimate from their estimates. From that, you can back out a difference in the implied standard deviations that works out to be about 20%. And from that, you can work out the difference out several standard deviations. If you do that calculation-and I have no reason to think that it couldn't be refined in a hundred ways-you get five to one, at the high end. Now, it's pointed out by one of the papers at this conference that these tests are not a very good measure and are not highly predictive with respect to people's ability to do that. And that's absolutely right. But I don't think that resolves the issue at all. Because if my reading of the data is right-it's something people can argue about-that there are some systematic differences in variability in different populations, then whatever the set of attributes are that are precisely defined to correlate with being an aeronautical engineer at MIT or being a chemist at Berkeley, those are probably different in their standard deviations as well. So my sense is that the unfortunate truth-I would far prefer to believe something else, because it would be easier to address what is surely a serious social problem if something else were true-is that the combination of the high-powered job hypothesis and the differing variances probably explains a fair amount of this problem.

There may also be elements, by the way, of differing, there is some, particularly in some attributes, that bear on engineering, there is reasonably strong evidence of taste differences between little girls and little boys that are not easy to attribute to socialization. I just returned from Israel, where we had the opportunity to visit a kibbutz, and to spend some time talking about the history of the kibbutz movement, and it is really very striking to hear how the movement started with an absolute commitment, of a kind one doesn't encounter in other places, that everybody was going to do the same jobs. Sometimes the women were going to fix the tractors, and the men were going to work in the nurseries, sometimes the men were going to fix the tractors and the women were going to work in the nurseries, and just under the pressure of what everyone wanted, in a hundred different kibbutzes, each one of which evolved, it all moved in the same direction. So, I think, while I would prefer to believe otherwise, I guess my experience with my two and a half year old twin daughters who were not given dolls and who were given trucks, and found themselves saying to each other, look, daddy truck is carrying the baby truck, tells me something. And I think it's just something that you probably have to recognize. There are two other hypotheses that are all over. One is socialization. Somehow little girls are all socialized towards nursing and little boys are socialized towards building bridges. No doubt there is some truth in that. I would be hesitant about assigning too much weight to that hypothesis for two reasons. First, most of what we've learned from empirical psychology in the last fifteen years has been that people naturally attribute things to socialization that are in fact not attributable to socialization. We've been astounded by the results of separated twins studies. The confident assertions that autism was a reflection of parental characteristics that were absolutely supported and that people knew from years of observational evidence have now been proven to be wrong. And so, the human mind has a tendency to grab to the socialization hypothesis when you can see it, and it often turns out not to be true. The second empirical problem is that girls are persisting longer and longer. When there were no girls majoring in chemistry, when there were no girls majoring in biology, it was much easier to blame parental socialization. Then, as we are increasingly finding today, the problem is what's happening when people are twenty, or when people are twenty-five, in terms of their patterns, with which they drop out. Again, to the extent it can be addressed, it's a terrific thing to address.

The most controversial in a way, question, and the most difficult question to judge, is what is the role of discrimination? To what extent is there overt discrimination? Surely there is some. Much more tellingly, to what extent are there pervasive patterns of passive discrimination and stereotyping in which people like to choose people like themselves, and the people in the previous group are disproportionately white male, and so they choose people who are like themselves, who are disproportionately white male. No one who's been in a university department or who has been involved in personnel processes can deny that this kind of taste does go on, and it is something that happens, and it is something that absolutely, vigorously needs to be combated. On the other hand, I think before regarding it as pervasive, and as the dominant explanation of the patterns we observe, there are two points that should make one hesitate. The first is the fallacy of composition. No doubt it is true that if any one institution makes a major effort to focus on reducing stereotyping, on achieving diversity, on hiring more people, no doubt it can succeed in hiring more. But each person it hires will come from a different institution, and so everyone observes that when an institution works very hard at this, to some extent they are able to produce better results. If I stand up at a football game and everybody else is sitting down, I can see much better, but if everybody stands up, the views may get a little better, but they don't get a lot better. And there's a real question as to how plausible it is to believe that there is anything like half as many people who are qualified to be scientists at top ten schools and who are now not at top ten schools, and that's the argument that one has to make in thinking about this as a national problem rather than an individual institutional problem. The second problem is the one that Gary Becker very powerfully pointed out in addressing racial discrimination many years ago. If it was really the case that everybody was discriminating, there would be very substantial opportunities for a limited number of people who were not prepared to discriminate to assemble remarkable departments of high quality people at relatively limited cost simply by the act of their not discriminating, because of what it would mean for the pool that was available. And there are certainly examples of institutions that have focused on increasing their diversity to their substantial benefit, but if there was really a pervasive pattern of discrimination that was leaving an extraordinary number of high-quality potential candidates behind, one suspects that in the highly competitive academic marketplace, there would be more examples of institutions that succeeded substantially by working to fill the gap. And I think one sees relatively little evidence of that. So my best guess, to provoke you, of what's behind all of this is that the largest phenomenon, by far, is the general clash between people's legitimate family desires and employers' current desire for high power and high intensity, that in the special case of science and engineering, there are issues of intrinsic aptitude, and particularly of the variability of aptitude, and that those considerations are reinforced by what are in fact lesser factors involving socialization and continuing discrimination. I would like nothing better than to be proved wrong, because I would like nothing better than for these problems to be addressable simply by everybody understanding what they are, and working very hard to address them.

http://web.archive.org/web/20080130023006/http://www.president.harvard.edu/speeches/2005/nber.html

somehow I feel you diminish the person because she is a woman - maybe because I've read several of your other prior posts, all of which seem to favor neanderthalian sentiments and fully embrace total absence of logic and rationality.

my goodness, could you be an irrational male, even hysterical?!

The vast majority of "derivatives" at the notional level are Interest Rate Swaps. Last year July about $460T notional and $9T market value (whatever that means). It looks like this is down a lot as of Dec. 2008.

http://www.occ.gov/ftp/release/2009-34a.pdf

That doesn't seem to cover all, but it does suggest a minimum of $130-160T in IRS.