Nouriel Roubini: Why Bernanke Deserves To Be Reappointed

New York Times:

LAST week Ben Bernanke appeared before Congress, setting off a discussion over whether the president should reappoint him as chairman of the Federal Reserve when his term ends next January. Mr. Bernanke deserves to be reappointed. Both the conventional and unconventional decisions made by this scholar of the Great Depression prevented the Great Recession of 2008-2009 from turning into the Great Depression 2.0.

Read the whole story: New York Times

Comments

[sonofsamphm1c]

Bernanke has done an exceptional job, and there is really very little chance that Obama will not reappoint him.

[PhilipTaylor]

His it the BS LINE the MSM uses and it is exactly that!

He is doing a FINE JOB for the WALL STREET BANKS!

A terrible JOB for AMERICA and its Manufacturing and High Tech sectors that can build wealth and jobs!

[sonofsamphm1c]

Sorry, but Bernanke is quickly establishing an environment in which investment in American business can once again take place.

Without him, American mfg/general economy wouldn't be in intensive care, it would be in the morgue.

History will view ben Bernanke as the greatest Fed Chairman, and Timothy Geithner as the greatest Secretary of the Treasury. They faced a certain chain-reaction catastrophe that would have left as many as 50% of all Americans unemployed. Their strategy averted that catasrophe, and they are genuine American heroes.

[viper234]

Audi the Fed and Roubini will be writing an entirely different article like, "Why I was wrong about reappointing Ben Bernanke as Fed Chairman."

[Carolab]

I really wonder about Roubini at times.

[PhilipTaylor]

Must AGREE!

Even Stiglitz at times worries me!

Krugman disappeared for months after his talk with Obama! What was that about!

They all have their HIDDEN AGENDAS and sources of incomes and influence!

[spinns17]

no f~n way .we need new blood in there.besides he should be in jail for keeping this from the american public for political puposes.along with frank and dodd ,and any others.

[BradSmith]

How about Dodd goes to jail and Peter Shiff goes to Washingtion? Of course we could just put Shiff in place of Ben and let him shut down the FED. Now how's that for a dream?

[DestinationsUnknown]

KUWAIT CITY — A Kuwaiti businessman linked to Citigroup and charged in the United States with fraud committed suicide Sunday, a security official said.

Hazem al-Braikan was found dead in his bed with a gunshot wound to the head and a handgun at his side, said the official, speaking on condition of anonymity because he did not have the full details.

The U.S. Securities and Exchange Commission charged al-Braikan last week with scheming to make millions by manipulating the stock of certain U.S. companies. The SEC said it was freezing more than $5 million in profits believed to have been made off the questionable deals by al-Braikan and three companies with whom he is associated.

Al-Braikan was CEO of Al-Raya Investment Co. which is 10-percent owned by the New York-based Citigroup Inc.

The SEC says al-Braikan's company as well as two other companies – the United Gulf Bank and KIPCO Asset Management Co. – traded shares based on two phony announcements.

One announcement faxed to media outlets July 19 and subsequently reported on the Internet the following day stated that a Middle Eastern investment group made an offer to acquire Stamford, Connecticut-based electronic systems maker Harman International Industries Inc.

[Carolab]

I'd like to see the forensic analysis on that one. Where "by his side"?

[DestinationsUnknown]

Do Americans understand Global? Global Financial Meltdown?

Do Americans understand what an OLIGOPOLY is?

Do Americans know what industries are OLIGOPOLIES in the USA?

Do Americans understand or know how to DISMANTLE an OLIGOPOLY?

What is the difference between OLIGOPOLY and MONOPOLY?

Thank you Ben- I am with Howard Dean- !

Thank you!

[Albert Amato]

It amazes me at how many shallow readers are for replacing Bernanke in the same way they call for the head of the head coach of their favorite football team.
It is a little complex to be merely thinking the replacement of Bernanke will be all good.
It is like getting a new weatherman because you don't like the drought that has occurred in your area.
Get over it and prepare your own future not be a victim of everything government.

[Chazmania]

Its about not excepting the status Que when they are clearly lying and causing human suffering including yours.

[sueinmn]

Continuing to allow Goldman to control all is much of the problem. They have maipulated the markets since their first days in business. Bernanke refuses to provide information to Congress as they are the ones allowed by law to know what he is doing or has done.

[Mikeeee]

The FED is NOT government owned or controlled, get over it and do something, if not for yourself, then for your child.

[joebhed]

thank you, Mikeeee for clearing that up.

[DosGatos2]

Disappointing that an article on Ms. Palin whinin' off in to the sunset gets 7,000+ posts but there are less than 200 on this issue. Bernanke's reappointment is a really big deal.

Bernanke had the authority to promulgate regulations on mortgage lending that could have averted the crisis entirely. FOR TWO FULL YEARS, Bernanke completely misread the problem and did nothing.

True, Bernanke did some good things after the crisis hit. However, no Fed chairman who could so badly misread the origin of the problem should keep his job. It's like being run over by a doctor but saying "he did such a good job of reattaching my leg" after the accident. Roubini is wrong on this one.

Furthermore, anyone who thinks we do not need the Fed--or does not understand Congress' right to delegate authority to the Fed--really needs to understand the problems which gave rise to its formation. I do not understand why people who otherwise seem relatively smart seem to hold this "abolish the Fed" view. Educate yourself, stop thinking what Rupert Murdoch wants you to think and get over it--the Fed plays a necessary role.

[Chazmania]

Bernanke did the appearance of good things to save face. he is as dishonest as they come. he is part of a system of criminals. to reappoint him would send a clear message that our mafia style government is alive and well and you American people are going to continue to take it up the ass!

[jekyll]

The FED plays a necessary role??? And then you have the audacity to tell people who want to Audit the FED to "educate themselves!" Sorry there champ....I could write all day on how the FED has destroyed the wealth of this nation. I could also write all day debunking your nonsense/theory of why/how the FED came into being, etc. Educated Americans won't buy into your propaganda. Audit/Abolish the FED NOW!!!!

[Carolab]

Aggravating, isn't it?

[joebhed]

Dos,
The purpose here is to have a dialogue, no?

In 1913 the private bankers stole the right of the American people to create their own money and had Congress create the Fed system, which has led us to where we are today.
You call it delegate, I call it abdicate.
Regardless of the person at the helm, the unsustainable ponzi-scheme debt-money system of the private bankers IS the cause of the problem.
And I don't only mean the Commercial-bankers under the Fed, I mean the entire private banking system that CREATES money out of thin air as a debt - repayable with interest that is often TWICE the amount of the original debt-loan , and then NEVER creates that interest money.
The debt-money system is broke, broken and insolvent.
We do not need the Fed and the private bankers any more than we need walk over a cliff.
A public-issue money system, debt-free at issue is the reform that we have been waiting for.
So, tell me why we do not need it.
And what the problems are, please.

[Mikeeee]

Why would you think he misread the problem, instead of encouraging it?

[breakfast]

Forget Bernanke.

It is the FED itself that must be rejected. It is insanity that we pay interest to the FED, a private banking cartel, for creating money which our own Congress is charged by our Constitution to create and regulate. The third largest item in the budget is interest....on our own money.....paid to the FED and thus to the individual banks which make up the banking cabal... which is the FED.

Get rid of the FED and the World Bank and the IMF and the BIS, before they do us all in.

Bernanke hasn't prevented a descent into depression, he has facilitated it. The banks are using this new infusion of funds for buying up assets and for further consolidation, not for lending.

[Chazmania]

The BS is getting so deep in Washington i do not know how they stand the stench.

[gfs5541]

Roubini is a good economist, but I disagree with him on this. They need a Fed Chairman that's not perceived to be a tool of Wall Street. Yes, get a "student" of the Great Depression, but let's get someone new in there.

[jekyll]

All FED chairman are all tied to Wall Street. The FED is a private banking cartel owned/controlled by the private banking trust. We need to do away with the FED altogether, because appointing someone else will only be more of the same.

[sonofsamphm1c]

Bernanke is probably one of the least "tied to Wall Street" chairman. For most of his life he was a college professor.

[Weathermaker]

The FED has a terrible track record. One of its main goals is to provide the stability of the dollar (stable prices). In the 100 years before the fed, the dollar lost 6% of its purchasing power. 96 years after the fed, the dollar has lost 95% of its value. And believe it or not, another goal is to assure the banking system is safe and sound.

How can anyone say that Bernanke did a good job and deserves a second term?

[Chazmania]

Because his handlers are as corrupt as he is!

[sonofsamphm1c]

If we went bak to making a nickel on a dollar, you would have your purchasing power back.

And then where would you be?

Or, why I do not give a crap for the irrelevant amount great-granny paid for a loaf of bread.

[joebhed]

it's the amount the grandkids will pay that we're worried about.

[opine2u]

Nouriel Roubini must believe that any other appointment by Barack Obama would be a disaster. He may even feel inside Obama isn't safe enough to post an economic candidate, since Obama never had any training in world of Accounting and High Finance. Better to stick with the number you know, than to mess around with a new figurehead in these explosive economic times.

[Weathermaker]

Repost:

Historically US presidents never really appointed a FED chairman. The FED board gives the president a list to pick a name... it's like asking him to pick the best soft drink in the world when the only options are Coke and Pepsi.

[joebhed]

WAAAAAAAAAAYYYY too true.
Of course, coming with a PS that the markets would prefer the Coke brand.

[venusvictrix]

Obama figured out a few things while negotiating that settlement with Citigroup over "purported" minority lending violations. At the very least, he figured out how to finance a presidential campaign as a relative unknown.

Plus, even though he went against Citi in his original complaint, it seems they came out well ahead in the end. Heck, Citigroup employees gave Obama about $700 Million dollars, spontaneously I suppose!

Interesting how so often times the "fix" winds up being so much more harmful to the supposed "victrim", that the presumed problem was to begin.

[PhilipTaylor]

JFK said, “Secrecy is Repugnant in a free and open society! And we are as a people inherently and historically opposed to secret societies, secret oaths, and to secret procedings!”

http://www.youtube.com/watch?v=xhZk8ronces

The Secret FED Reserve System MUST BE AUDITED!

[venusvictrix]

Damn I just only now figured out how dedicated you are! Sorry I only keep up on these blogs sporadically, but you're doing something good.

Keep it up!!!!!

[PhilipTaylor]

Perhaps when the FED is FIRMLY under the Control of the "American People," instead of 2/3rds owned by Big Five Biggest Wall Street Banks, a Swiss Bank, a London Bank, and a German Bank, then and only then should we accept a resume from Bernanke along with others who are less connected to BIG WORLD BANKS to fill its role in Economic Planning!

The FED Reserve System with its DEBT CURRENCY creates Debt for Americans while making Big Banks Wealthy!

The FED System is the PRIME Reason America has gone from the #1 Creditor Nation to the #1 Debtor Nation!

[Viper]

My normal opinion would be the FED , in the way its set up is not the American way...

However, if this had been under Congressional control... and less independent.. we would all be in soup lines....

In 1912 Teddy Roosevelt proposed National Health insurance ... and almost 100 years later what comes out will not even be that.... may be just another hump on a lame camel...

True the FED was part of what caused this because it had become to politicalized... one can only imagine if it was completely politicaized into government... but then the EXEC and Congress did the deregulation, the free trade and the ensuing deficits, the outsourcing, the H1Bs and etc... that led to no job creation,loss of anything to export and then tax cuts that led to deficits but created no real jobs.... except in China and india...

The FED if part of the government would lower rates before every election.... to ensure that the controling party stayed in power. So while i dont like the way its set up.... I dont want it to lose independence.

Regards

Regards

[jekyll]

I understand where you are coming from....however abolishing the FED would only be a first step. We also need a sound currency. Giving the power to create money/credit out of thin air to Congress would also not be a great idea, but at least the transactions would be audited and open for discussion. We need to have multiple currencies available as legal tender which ensures competition and a free banking system. Money, like food/oil, is a commodity and therefore it should be treated as such.

[joebhed]

Please excuse the interruption.
I recommend a read of Dr. Ronnie Phillips' book:
"The Chicago Plan and New Deal Banking Reforms".

You make a connection between elections and monetary policy that is easily disassociated.
Even noted monetary historian Milton Friedman in his early writings recognized the potential for a workable government-issue system in his American Economic Review article titled: "A Fiscal and Monetary Framework for Economic Stability".

If the progressive economists of the Chicago School in the '20s and the most notable conservative economist in the '40s and '50s could recognize the true "counter-cyclical" nature of a government-issue money system, as did Lincoln with the Greenbacks, then I hope that you can also.
I hope so.
regards.

[venusvictrix]

Bernanke is afflicted with the same blindness that Alan Greenspan has, and I don't think it's a flaw in their intellectual capacity. Rather, they both suffer from severely corrupted morals, which allow them to persist in maintaining a pathological arrogance and grandiose sense of entitlement unparalleled since the time of the French Revolution: when commoners and peasants finally revolted against the oppressive taxations fueling lavish lifestyles amongst royalty and papacy alike.

If Bernanke had any soul or competence, he would have recognized Greenspan had us on a road to ruin from the earliest moments of Greenspan’s reign. Absent recognition or acknowledgement of this problem, Bernanke is merely another symptom of the virus that’s infected our society over the past two decades.

Both he and Greenspan should be called before a tribunal. Not that I expect that to happen, but any simpleton could see through the scam they’ve both perpetrated upon the American public: if they had the will to reason.

[thinkb4uleapII]

The author makes a very specious argument for retaining Ben Bernanke as Fed Chair. It is akin to advocating for a fire chief who ignites a blaze, fuels the fire, and then is praised as a hero for leading the brigade that squelches the flames.

[vagabondvet]

It's more like Roubini is arguing to rehire the fire chief that took the job while a house was on fire and in order to put out the first fire, he set the rest of the neighborhood on fire...

[venusvictrix]

Problem is, Greenspan started the fires, and he was there first.

Bernanke could and should have done something, but this analogy won't work.