I am usually on board with David Brooks on many things as we are both right of center on issues, but I totally and completely disagree with him on his characterization of Ben Bernanke.
www.nytimes.com/2009/07/31/opinion/31brooks.html?_r=1"
"Bernanke & Co. never really got control of events. But they did avert disaster and committed only a few big blunders. In the real world, that counts as a job well done".
In the real world "a job well done" is really lets screw common citizens and play them as fools. The Fed although averted a depression, hasn't really averted a disaster, they do what politicians generally do, shift the pain into the future. They didn't avert disaster for millions of Americans. They let Wall Street create a culture of excessive risk taking that eventually led to the sinking of the economy. The Federal Reserve co-authored this crisis along with Wall street, they should own up to it, that is why Bernanke needs to be reappointed. No other reason needed.
Why do we continue to put flawed incompetent people like Ben Bernanke on pedestals?
In 1998, after LTCM and the Asian Crisis was swept away by bailouts, Time Magazine put Greenspan, Robert Rubin, and Larry Summers on its cover. It read "Committee To Save The World". Does anyone today think these guys are worth a single line waxing poetic on their accomplishments anywhere?
The deification of financial titans has been going on for 100 years. All the way back when JP Morgan himself was acclaimed for saving the stock market in 1907. In fact he did nothing, he made a few calls, it was government, not Wall Street that saved the day. That was the first bailout of Wall Street. That rescue convinced bankers that they can get away with murder, that they need to intertwine government with Wall Street.
The markets had wanted Obama to give Bernanke another run, that if he didn't, the markets would tank. That the President would be then blamed, so he interrupted his vacation to make the announcement 4 months early.
Give Bernanke some credit, he had an unlimited checkbook and he used it. He acted very aggressively with other peoples money. So he flooded the markets with excess liquidity, the exact opposite of what was done in 1929, which in turn at that time was a grave error. But he has not won the game yet. Only Wall Street has the Cheshire Cat grin at the moment, many regional banks are going out of business, unemployment is problematic, wages are falling. If the markets do break down we will be throwing darts at Ben.
The biggest problem I have with Bernanke and Geithner is not the run away spending and printing, its just the hand outs to Wall Street with no concessions attached. Has Wall Street changed one bit? Have the financials made life easier for American Home Owners? Credit Card Holders? Car Owners? NO! They have generally made life hell for the ones bailing them out. Handing out trillions to Blankfein, Lewis, and Dimon without any give backs and guarantees is down right criminal and un-American!
The Fed is so deeply intertwined with Wall Street and Congress that you cant take these guys seriously anymore. They are there to focus on fighting inflation and improving economic conditions, not to make sure bonus's are paid out.
I am already reading many economists who work on Wall Street who missed the entire crisis alerting Bernanke to raise rates now that he has stabilized the system. These economists should be shot! My guess is he will listen to Wall Street, and put the brakes on, killing the system, because its still on life support.
I am hoping against hope that the Treasury and Fed will one day confront the problems of millions of ordinary citizens. This is real pain and loss. The Federal Reserve along with Ben Bernanke should start serving the public interest of people not named Blankfein, Lewis, and Dimon. I am not holding my breath, the problem with Treasury and the Fed is that they see only Wall Street in their vision of America, not Main Street. They are incapable of serving the public. How can they? They don't think we exist.
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