STOCKS SET TO SOAR AS BERNANKE RECONFIRMATION APPROACHES
Stock market futures are trading almost 1% higher in overnight trade as the banks can breathe a big sigh of relief over the Bernanke reconfirmation vote. The friendliest big banker of all-time will surely continue to prime the liquidity pump at the Fed and inflate bank balance sheets. After all, it’s good for Wall Street so it must be good for Main Street, right?
This so-called expert on the Great Depression completely missed the Great Recession coming and then took credit for saving the world from a second Great Depression despite few signs that his actions have actually done anything to help the recession on Main Street. What we have learned over the course of the last year is that Bernanke actually worsened the problem of too big to fail, has failed as a regulator and has only increased the financial strains on a government that is already in over its head. Nonetheless, what’s good for the banks is good for Wall Street as we see the futures soaring. Right?
Unfortunately, as we’ve learned over the course of the last year, what’s good for Wall Street is not always good for Main Street. The boom/bust policies of the Federal Reserve have not worked over the course of the last 15 years and the public wants real change. More unfortunately, President Obama continues to ignore the cries for change that he promised. This recession he “inherited” from President Bush can be largely blamed on Bernanke and with his staunch support of Bernanke in recent days, it’s time for Obama to begin accepting this recession as his own. Obama has made his bed with Bernanke. Let’s see how well he enjoys having a bearded man at such close quarters. As for the rest of the Senators who vote for Bernanke this week – unfortunately, many of them don’t have the luxury of waiting three more years for an economic recovery as the public will surely remember their names in November. And yes, the topic of jobs, bank bailouts, and the Fed will be very fresh in the electorate’s memory and almost certain to dominate decision making….
Silly comment.
People need a scapegoat, if they do not know much about monetary policy, it’s Mr. Bernanke.
But he is an accomplished scholar, and one of the world’s top experts on Monetary Policy.
What should he have done?
Who would have done it better ?
Do you need a accomplished scholar help you figure out how much unemployement rate has increased and how much purchase power of dollar has been debased since his tunure?
This Benanke guy is very lucky. Not too long ago and not too long after he would belong to prison. No wonder Nassim Taleb can not believe what time we live in and choose to exile.
If he is such an expert on monetary policy and the Great Depression then why did he completely miss this crisis when many of his colleagues were obviously worried about it?
What should he have done? How about a little risk management? “Housing looks vulnerable, maybe we should implement some plans to pare back risk taking in the housing market”. He did nothing.
Who would have done it better? How about anyone with an ounce of actual market experience as opposed to another scholar who lives and breaths scientific method?
What should he have done?
Bernanke (and Greenspan) kept money too loose for too long. Monetary policy should have ben tighter over the past 10 years. We are in a mess that may sink the whole country. As to who would have done better, I ask who could have done worse? We now have the arsonist in charge of the fire department.
TPC, the headline may have been more accurate if he said “Apple soars, moving S&P futures up with it.”
more interested in the investment stance than the economic debate…
my view is that i went from 90% long to basically all cash last thursday/friday because i think the effect of an increasingly hostile political environment will have a negative effect on stocks (especially financial) in the short term….i view this morning’s rise as a head fake…in the longer term, i will go long when the unemployment rate starts going lower…wonder when that will be…
don’t hold your breath..U-6 will likely exceed 30% before this is all said and done.