Larry Summers doesn't see crisis-like indicators

While he would not directly address Thursday's market decline, former U.S. Treasury Secretary Larry Summers was not worried.

"There's no question that assets are more fully priced than they were 18 months ago," told CNBC's "Squawk Box" on Friday. "But it seems to me that if you look for the kind of indicators that were prevalent in 1999 and 2000 in the stock market, or the kind of indicators that were prevalent in the housing market in 2006, I don't see them there."

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He also said controversial sector comments in a Fed policy report accompanying Chair Janet Yellen's testimony in mid-July were not "where [the Fed's] core expertise is."

As for income inequality, Summers did not think the idea that it was Fed induced was "actually remotely plausible."

Low interest rates may have appeared to benefit asset holders rather than savers, but Summers said the gain was only short term as bond yields have now declined significantly.

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"First of all, a strong economy is the best thing for people who have been left behind, the people who are last hired are the people who are first fired," he said. The idea that the Fed "causes more inequality and it is just a policy to help the rich, I think it's a little crazy."

Rather, Summers did not think the new tax rules were enough and called for "comprehensive tax reform."

"It's not viable to continue for five more years with the tax system we now have," he said. "And as part of that comprehensive tax reform, there are going to need to be issues that address the treatment of foreign income in a very fundamental way, including measures that reduce the incentive for inversions."

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