I thought I would take a quick moment to welcome Ben Bernanke as the upcoming chairman of the U.S. Federal Reserve. I have read some of his writings and heard him speak, and I think he will be a refreshing change from the often confusing and obfuscated language of the out-going chairman, Alan Greenspan. Throughout my site, I have offered various commentary on Greenspan's speeches and pronouncements on behalf of the Fed. I often took great pains to pick apart his language and find the hidden nuggets resting somewhere in the fog. I will miss all that fun, but I look forward to hearing someone speak on Federal Reserve policy with clarity and directness that normal folks can understand - even if I end up disagreeing with it anyway!
Today's rally in the financial markets was a welcome sight since I believe some folks out there were starting to feel separation anxiety over the prospect of losing Uncle Al. My favorite perma-bear, Bill Fleckstein, predicted Bush would make this "no-brainer" choice. If the market already had a clue, we should not be surprised to see this rally fizzle quickly like so many others of the past few months. I for one still cannot understand why so many writers and pundits have spilled so much ink complimenting Greenspan on the work he has done guiding our economy. Even a cursory review will demonstrate the costs that have come with the current prosperity. Some have argued that all of the recent financial crises under Greenspan's tenure were caused by the very Federal Reserve that soon sought to alleviate the damage (read almost any article by Bill Fleckstein). Perhaps these cycles of boom and bust are the inevitable outcome of a governmental body that is typically forced to react to current economic events rather than move forcefully in anticipation of predicted outcomes. Time will tell. Good luck Professor Bernanke! Greenspan has left you with one big bubblicious mess to handle!
(For some less than flattering commentary on Greenie's work, see Bill Fleckstein as he writes "Greenspan: The worst Fed chief ever." He might sound like a broken record at times, but his observations are worth reviewing.)
© DrDuru, 2005