“Job Review Time…for Bernanke” - December 3, 2009

Lots of job interviews going on in the country today. And unless it’s for you, the most important one happening today is in Washington for Ben Bernanke. The FED Chairman will be in front of the Senate Banking Committee for his conformation hearing to keep his job.

Bernanke has been a lightening rod for a lot of anger that Wall Street got bailed out and Main Street didn’t. In fact, Senator Bernie Sanders, an Independent from Vermont, and a long-term critic of the FED, has placed a “hold” on Bernanke’s nomination for a 2^nd term to try and block his reappointment.

He claims that “Bernanke has failed at every task assigned to the FED.”

Let me tell you why, in Mr. Sanders case, “I” stands for ignorant not independent.

(1) The FED had little choice last year but to pump enormous amounts of capital into the financial markets…which helped to avert an even greater global crisis than occurred.

(2) The FED did not cause this crisis. Wall Street and Congressional policies did. The FED was forced into the task of sweeping up the effects of greed and incompetence. And it did a good job. Maybe not the best, but Bernanke helped to pull the economy out of the deepest ditch since the Great Depression.

The Chairman will prevail in these hearings after some tough challenges. He will be reappointed, and that will be good for the economy and the country

“Job Review Time…for Bernanke” - December 3, 2009

Lots of job interviews going on in the country today. And unless it’s for you, the most important one happening today is in Washington for Ben Bernanke. The FED Chairman will be in front of the Senate Banking Committee for his conformation hearing to keep his job.

Bernanke has been a lightening rod for a lot of anger that Wall Street got bailed out and Main Street didn’t. In fact, Senator Bernie Sanders, an Independent from Vermont, and a long-term critic of the FED, has placed a “hold” on Bernanke’s nomination for a 2^nd term to try and block his reappointment.

He claims that “Bernanke has failed at every task assigned to the FED.”

Let me tell you why, in Mr. Sanders case, “I” stands for ignorant not independent.

(1) The FED had little choice last year but to pump enormous amounts of capital into the financial markets…which helped to avert an even greater global crisis than occurred.

(2) The FED did not cause this crisis. Wall Street and Congressional policies did. The FED was forced into the task of sweeping up the effects of greed and incompetence. And it did a good job. Maybe not the best, but Bernanke helped to pull the economy out of the deepest ditch since the Great Depression.

The Chairman will prevail in these hearings after some tough challenges. He will be reappointed, and that will be good for the economy and the country

“Bring on the International Soccer Federation…” - December 2, 2009

The ADP jobs report this morning showed more deterioration in the jobs market, but that was not unexpected and the markets should not react much at all to this report.

The real drama du jour today will be when Treasury Secretary Timothy Geithner testifies this morning before the Senate Agricultural Committee on OTC derivatives.

On the surface, this doesn’t sound as sexy as yesterday’s drama where the Chairman of GM seized the wheel from CEO Fritz Henderson. But there will be a lot of people watching to hear what he has to say about regulating these instruments…and instruments of its type.

Here’s why this is important.

The Washington policy focus of the past year has correctly been on bailouts and stimulus programs. But very little has been done to prevent a similar crisis from happening again – to regulate what Goldman Sach’s Chairman Lloyd Blankfein has called irresponsible and damaging products created by Wall Street over the past decade, and for which he has even apologized for publicly.

We need to take a lesson from the International Soccer Federation who is meeting in Cape Town, South Africa today to consider adding more referees to World Cup matches to prevent blown calls from determining outcomes…which happened last month in a game between France and Ireland.

Geithner’s comments will be a barometer as to whether this Administration is willing to do to add more referees to the capital market playing field so that blown judgments don’t create a second crisis.