Wednesday, August 26, 2009

Stephen Roach - The Case Against Bernanke's Reappointment

We all know by now that the President has announced his support for the reappointment of Federal Reserve Chairman Bernanke. I have noted on here before that I actually believe Bernanke is a sincere bureaucrat. But there is a substantial case for a house cleaning in Washington. That surely includes the Federal Reserve. Stephen Roach, one of our favorites, gives an unvarnished case against the reappointment of Bernanke at the Financial Times.

Roach, always one to impart his crusty sardonic wit, quips "It is as if a doctor guilty of malpractice is being given credit for inventing a miracle cure.". I would actually go farther and state it is as if a doctor who has infected a patient with a life-threatening disease was given the Nobel Prize for inventing its miracle cure.

Ironically, Bernanke will surely have more future crises to deal with because of his support for failed ideologies. Who better to deal with the incompetence of these ideologies than the incompetence which endorsed them? Well I suppose someone disagreed with this perspective:

"We can't solve problems by using the same kind of thinking we used when we created them." -- Albert Einstein

posted by TimingLogic at 11:23 AM