Someone once told me “hire for attitude, train for the rest”, perhaps that was someone famous, perhaps not, but either-way it has always worked for me.
I saw this the other day:
Governments, if they endure, always tend increasingly toward aristocratic forms. No government in history has been known to evade this pattern. And as the aristocracy develops, government tends more and more to act exclusively in the interests of the ruling class — whether that class be hereditary royalty, oligarchs of financial empires, or entrenched bureaucracy.
Good government never depends upon laws, but upon the personal qualities of those who govern. The machinery of government is always subordinate to the will of those who administer that machinery. The most important element of government, therefore, is the method of choosing leaders.
What you of the CHOAM directorate seem unable to understand is that you seldom find real loyalties in commerce ... Men must want to do things of their own innermost drives. People, not commercial organisations or chains of command, are what make great civilizations work, every civilization depends upon the quality of the individuals it produces. If you overorganize humans, over-legalize them, suppress their urge to greatness — they cannot work and their civilization collapses.
— Frank Herbert, Children of Dune
Bernake made a lot of mistakes, but as Brad DeLong pointed out, so would anyone (seekingalpha.com/article/178571-reconfir...).
Does he have some skeletons hidden in the Fed – you bet he does!
The point is he knows where they are.
But I firmly believe that he has the integrity and the intelligence to wrestle with a job and a system that is manifestly far from ideal, and get to the other side, and with regard to the mistakes he made, I have no doubt he learned from them, which is the important thing.
You don’t change the officer in the middle of a fire-fight, unless he breaks down or shows he is manifestly incompetent and has lost control. That’s not the case here, Bernake may not be the best guy for the job, and there are certainly a lot of things that need changing.
But the time for change is not when the bullets are flying through the air, this fire-fight is not over, he needs to be allowed to finish the job.
Then cut his head off if you like, but wait until it’s over.
If he is not confirmed there will be huge uncertainty, gold will go through the roof, the dollar will tank so will the stock market.
Disclosure: "No Positions"