Unless Federal Reserve Chairman Ben Bernanke is confirmed by the U.S. Congress, his tenure as Federal Reserve Chairman will come to an abrupt end next week. Last week Senator Barbara Boxer, Russ Feingold, Byron Dorgan and others last week came out against his re-confirmation. And as he lost support for confirmation, the stock market dropped about 5 percent.
Then, as it began to look like his confirmation was more likely, we see these headlines:
La Times: Stocks up as Bernanke reappointment concerns ease
Business Week: Stocks up as Bernanke reappointment concerns ease
Reuters: US STOCKS-Indexes rise on Bernanke reconfirmation optimism
So are the markets trying to tell us that unless Ben Bernanke is confirmed as Fed chairman, the economy will go into a downturn and the markets will crash? A lot of pundits seem to think so.
In other words, they are all telling us: Bernanke is too big to fail.
Ben Bernanke and Hank Paulson made the argument that we had to rescue failed banks, otherwise it would be Depression 2.0, the 1930s all over again. Now we are being old that we have to rescue failed Fed chairman or face the same fate.
Well if Ben Bernanke is too big to fail, then that is reason enough to get rid of him.
The views expressed in this article are those of the author and do not necessarily represent the views of Laguna Beach Bikini, its editors, staff or any other organization.
