Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

To Bernanke or Not to Bernanke


Four more years of the Fed chairman?

It's every pitcher's worst nightmare -- or possibly their fondest dream, if they're the sort of person who thrives under pressure -- to take the mound in the final inning of a tie game with the bases loaded and nobody out. It's an almost impossible situation -- a disaster you didn't create, but have been called upon to make right.

Such was the position Ben Bernanke, preeminent scholar of the Great Depression, found himself in when he took over at the Federal Reserve in February 2006. The US housing market was just beginning to show signs of deterioration, and decades of excessive debt and mispriced risk were about to explode into the biggest financial crisis since the 1930s.

Now, as the Fed finishes up its June monetary policy meeting, Bernanke will remain on Capitol Hill to face questions concerning his role in the crisis and whether he's the best candidate to lead the Fed into the future. With the chairman's term ending in January 2010, President Obama has 6 months to decide whether Bernanke's performance under extreme duress -- and the unprecedented measures he took to save the global financial system -- are worthy of another 4 years.

Bernanke is a polarizing figure -- indeed, he has been since he first came to office. Coming in as he did after almost 20 years of authoritarian rule under "the Maestro," Alan Greenspan, Bernanke sought to downplay the role of Fed chairman. Some hail him as a savior: Who better at the helm during an historic credit crisis than the economist who's arguably spent his entire academic career preparing for just such an assignment?

Bernanke's papers, his dissertation, and the speeches he's made over the past 3 decades read almost like a script for handling the type of maelstrom he's faced during the past 24 months. Supporters argue that Bernanke prepared himself well -- that he performed admirably under wildly difficult circumstances.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opin= =3D =3D3D ion about the performance of securities and financial markets by = the wr=3D iter=3D3D s whose articles appear on the site. The views expresse= d by the wri=3D ters are=3D3D not necessarily the views of Minyanville Medi= a, Inc. or members=3D of its man=3D3D agement. Nothing contained on the web= site is intended to con=3D stitute a recom=3D3D mendation or advice address= ed to an individual investor =3D or category of inve=3D3D stors to purchase= , sell or hold any security, or to =3D take any action with re=3D3D spect t= o the prospective movement of the securit=3D ies markets or to solicit t=3D= 3D he purchase or sale of any security. Any inv=3D estment decisions must b= e made =3D3D by the reader either individually or in =3D consultation with = his or her invest=3D3D ment professional. Minyanville write=3D rs and staff= may trade or hold position=3D3D s in securities that are discuss=3D ed in = articles appearing on the website. Wr=3D3D iters of articles are requir=3D = ed to disclose whether they have a position in =3D3D any stock or fund disc= us=3D sed in an article, but are not permitted to disclos=3D3D e the size o= r direct=3D ion of the position. Nothing on this website is intende=3D3D d = to solicit bus=3D iness of any kind for a writer's business or fund. Mi= ny=3D3D anville mana=3D gement and staff as well as contributing writers wi= ll not respo=3D3D nd to em=3D ails or other communications requesting inves= tment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos