Huffington Post: Ben Bernanke Wins; America LosesSubmitted by bobbyw24 on Fri, 01/29/2010 - 08:20
Despite all the rhetorical flourishes and grandstanding engaged in by that once august body, the U.S. Senate, when it came time for the rubber to meet the road, they voted overwhelmingly to reappoint Ben Bernanke to a second term as chairman of the Federal Reserve. Let us be clear as to what those 70 senators voted for, in deciding to support President Obama's preference that Bernanke remain at the helm of the Fed. Failure on a monumental scale has been conspicuously rewarded.
While Bernanke's predecessor has been rightly condemned for his loose monetary polices and dogmatic conviction that unregulated market fundamentalism is always correct, the current Fed chairman has demonstrated continuity with those now discredited policies, along with a numbing myopia in failing to see a train wreck coming, despite ample warning.
In October 2005, Ben Bernanke appeared before Congress, only days before being nominated to succeed Alan Greenspan. Growing concern had already emerged regarding the unsustainability of what was obviously a massive housing asset bubble, in large part facilitated by the Fed's easy monetary policies, fully supported by Bernanke. When questioned on the perception that the residential housing market was a growing danger to the nation's economic health, the supposedly brilliant and perceptive Ben Bernanke stated that the escalation in U.S. housing prices did not constitute an asset bubble, and was in fact based on sound economic fundamentals.
Sound economic fundamentals?