Bernanke's Reappointment: Surprised, But Relieved 14 comments
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From David Wessel (Obama to Reappoint Fed Chairman Ben Bernanke - WSJ.com):
President Barack Obama will announce Tuesday that he is nominating Ben Bernanke for a second four-year term as chairman of the Federal Reserve, White House Chief of Staff Rahm Emanuel said...
Two reactions:
I think Bernanke is one of the best in the world for this job--I cannot think of anyone clearly better. He has made only one big mistake--buckling under to pressure from all those yelling at him for enabling moral hazard and not finding a way to take over Lehman Brothers, and he is not going to make the same mistake again...
I am surprised that he is being reappointed. I would have thought that the combination of people angry because he has given too much public money to the banks and people angry because he didn't stop the recession would together make him damaged and that Obama would want to bring in a fresh face--never mind that Bernanke had no way to try to lessen the recession save by policy steps that inevitably involve giving money to the banks. It shows, I think, a seriousness about getting the policies right--or as close to right as we can--that I like to see in a president...
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How can a man who could not see this coming, cannot define what he is up against, has a history of producing an endless stream of inaccurate projections, and has got the US into more debt than even he is prepared to admit, be in the least bit qualified to lead you to the promised land?
China...yes China Premier who lends billions to US...says this....keep buying at S&P 54% high from march?? please keep it up uncle ben's...LOL
China Premier Rejects 'Blindly Optimistic' View of Economy
If China start a correction with all the cash they have.....Imagine
the rest of the world and US with its "MASSIVE" multi Trillions
debt???
China Premier Rejects 'Blindly Optimistic' View of Economy
By LIU LI
BEIJING -- China's Premier Wen Jiabao expressed caution about the
country's economic recovery, saying the effects of some short-term
policies may fade while longer-term policies will take time to have
an
impact.
Ending a three-day visit to the eastern province of Zhejiang, Mr. Wen
warned against being "blindly optimistic," according to a statement
by
the State Council.
Wen Jiabao
.His comments suggest that Beijing feels it is too early to consider
exiting the four trillion yuan ($585.6 billion) fiscal stimulus and
other steps that have buoyed the world's third-biggest economy.
(Global issuers of corporate debt are being forced to renegotiate
terms in China because of capital problems.)
Mr. Wen's remarks also highlight growing tension in China's policy
debate as the government calls for staying the course while some
lawmakers have started to argue for sharply curbing loan growth in
the
second half.
The premier reiterated that China must maintain stable macroeconomic
policies, namely its "moderately loose" monetary policy and "active"
fiscal policy. He didn't raise concerns about inflation, but said
China should "ensure market liquidity is reasonably ample." He called
for "strengthening the balance and sustainability of credit in
supporting economic and social development."
While reinforcing Beijing's official stance, Mr. Wen's comments
didn't
rule out policy tweaks. The People's Bank of China said this month it
will fine-tune its policies based on the economic situation and
changes in prices.
Expectations that Beijing might rein in loan growth caused sharp
falls
in Chinese stock prices for much of this month, reverberating through
markets around the world.
Last week, lawmakers, including former central bank Vice Governor Wu
Xiaoling, voiced concern about the potential risks of the enormous
stimulus efforts. Lawmaker Yin Zhongqing said that new yuan loans,
which surged to nearly eight trillion yuan in the first seven months,
should be limited to 10 trillion yuan for the full year.
Mr. Wen appeared to try to damp public debate, saying policy makers
must "unify our thoughts toward the judgment of the central
government
in the economic situation, and unify our actions toward carrying out
the decisions of the central government" regarding the raft of
measures to combat the global financial crisis.
Beijing's stimulus program helped to lift China's economic growth to
7.9% year-to-year in the second quarter, from 6.1% in the first
quarter.
May be lower....keep loading...lol
Published: Tuesday, 25 Aug 2009 | 8:14 AM ET Text Size By: Antonia Oprita
Associate Web Producer
The danger of a W-shaped recession is not behind us, because consumers still have to keep spending after the government's money from various stimulus packages is over, Art Cashin, director of floor operations at UBS Financial Services, told CNBC Tuesday.
"The concern is … that we're seeing some growth in the economy but it's all government-generated," Cashin told "Squawk Box."
"When the government giveaway stops, will the consumer pick up?"
The automobile sector boost came from the government's cash for clunkers program, which is now ending, while aid for buyers of a first home has also helped the housing sector, Cashin said.
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But "we may be eating the seed corn… and maybe we'll have that W coming," he warned.
Optimism about the speed with which the economy will pick up was overblown, according to Cashin.
"Everybody is looking for that turn. People keep talking about the recovery starting … but the Fed statement didn't say recovery. It said levelling off," he said.
China, which many analysts hope will help pull the world out of the recession, faces the same problem of spending money to stimulate the economy but not managing to kick-start the private sector, he said.
Slideshow: The World's Safest Banks
"You want a spark that becomes sustainable. The same thing in China. Their economy is about exports," Cashin said. But if consumers elsewhere do not buy things, China's big manufacturing power is underutilized.
"I think… China's going to be important, it's going to be important for the next 6 weeks or so," he said.
More volatility in the Chinese markets may follow because "all their economic figures are suspect, people have started not to believe them," Cashin said, explaining that paradoxically China reports good export figures while the Baltic Dry Index, which tracks shipping prices, has fallen.
"Their banking system is more bizarre than ours was before the crisis," Cashin added, echoing fears by other analysts of loan defaults among Chinese consumers.
thanks....
On Aug 25 07:11 AM bloomberg30 wrote:
> sell everything, today you have the best price on your stocks in
> the next 30 years.
theburningplatform.com...
Worried of course - next bubble is already at hand, no moral hazard ever - take your grab bag and go to DC.
He obeyed and now he is rewarded. He created a large debt (that my kids will pay) to save the corrupt Wall Street and is trying to create a bubble to solve the previous bubble.
They think that people are stupid.
So Obama is once again showing that his country is more important to him than partisan politics.
Why would we let him go away at this time but, instead, tie this mess around his neck for the next four years? Be that as it may - - - whatever the outcome, be it the Second Greater Depression, or the Miraculous Recovery of the history of all mankind.
For a moment I thought King B was stupid, now I know he is clever.
TK
On Aug 25 12:50 PM Sr. EM wrote:
> This is not good news. Bernanke is a crony of Obama.
>
> He obeyed and now he is rewarded. He created a large debt (that my
> kids will pay) to save the corrupt Wall Street and is trying to create
> a bubble to solve the previous bubble.
>
> They think that people are stupid.