Friday, January 22, 2010

Bernanke Confirmation to Another Term at Fed in Trouble?

The good news is that there is growing reluctance to reappointing Ben Bernanke to another term at the head of the Federal Reserve. Today alone two new Democratic senators, Boxer and Feingold, announced they are voting NO on Bernanke's confirmation.

The bad news is that even though the trend is clearly against Bernanke at this point I still expect him to be confirmed. But then again I hope I'm wrong. Who would have thought Senator Scott Brown of Massachusetts would be sitting in Ted Kennedy's seat?

I'm sure Ben Bernanke is a nice man. He probably likes flowers and trees and would read books to the blind if politely asked. But his tenure at the Fed has been a disaster of monumental proportions. Bernanke has missed so many national and international economic trends and problems he should have seen coming he makes the now discredited Alan Greenspan look like Nostradamus in comparison.

The country needs a new direction at the Fed and a change in leadership. The market has lost confidence in Bernanke and even his allies in Congress and in the White House see that a Fed chairman under siege for making dozens of really bad decisions over years and years honestly isn't the best choice when the economy is still teetering on the brink of depression.

Even Bernanke realized this himself when he asked the GAO to investigate the Fed's role in the AIG bailout. The notion of a Fed chairman trying to hide behind the skirts of the GAO to cover up a $40 billion mistake a first year MBA student would not make is sad.

I don't think Bernanke has done anything illegal.

I don't think Ben Bernanke is a bad guy.

It's just at this time in our economic history when we are suffering through 17% unemployment, millions of foreclosures, and worldwide and withering economic competition from a dozen nations bent on seizing U.S. markets we need a stronger chief at the Fed. His recipe of cheap money, inflation, devaluation, increased regulation on the one hand while ignoring financial problems on the other, is a recipe for national suicide.

I hope the U.S. Senate rejects his reappointment and sends Helicopter Ben back to a classroom in Princeton, New Jersey where he belongs.

I'll even buy him a bag of chalk for his blackboard as a welcome home gift.

Robert J. Abalos, Esq.