Send Bernanke On His Way

Bloomberg ran a story today about the reappointment of Ben Bernanke.

President Barack Obama expressed confidence that Federal Reserve Chairman Ben S. Bernanke will win Senate approval for a second term, even as two Democrats up for re-election in 2010 came out against him.

“The president has a great deal of confidence in what Chairman Bernanke did to bring our economy back from the brink,” Deputy Press Secretary Bill Burton told reporters traveling with Obama to an event in Ohio. Obama “continues to think he’s the best person for the job and will be confirmed.”

Democratic Senators Barbara Boxer of California and Russ Feingold of Wisconsin said today in Washington they’ll oppose Bernanke, whose term ends at the end of the month. Senate Finance Committee Chairman Max Baucus, a Democrat, and Judd Gregg, a Republican member of the banking committee, said there’s enough support for Bernanke to secure his confirmation.

Bernanke, while navigating the economy through the worst slump since the Great Depression, has drawn fire from lawmakers for lax regulation prior to the financial crisis and for putting taxpayer dollars at risk through the rescues of Bear Stearns Cos. and American International Group Inc.

The Fed chief will probably need 60 votes in the Senate to break procedural holds from at least four lawmakers.

So the Chairman is getting it from both sides. Some say he didn't do enough and some say he did too little. All agree he dropped the ball in failing to predict what the economy was headed into. 

I would be happy to say let him go back to Princeton, but what do we get in his place? It will be hard to find somebody willing to print more money than Ben. However, the politization of the Fed has never been more in danger. What if we get an Obama puppet at the helm of the printing press? 

One thing is for sure, the market won't like it if he leaves...at least in the short term.