Sunday, January 24, 2010

Bernanke Fizzle Out - Update 3

I did not realize that newly elected MA Senator Scott Brown has nothing to do with Bernanke hearing since he will not in all probability be seated in Senate by then, that is next week. So the likelihood of politically charged endorsement or opposition by Sen. Brown is less. However, even if he issues a statement of his support or opposition, it will have outsize significance than any single senator.

Sen. Kerry came out with a strong endorsement of Bernanke. Hope it is not yet another his 'Iraq vote' - I was not for it before I voted.... Clearly, expediency of currying favor with Administration, since so many of his Foreign Policy bills in Senate are linked with White House; has triumphed a good sense here for Sen. Kerry. As usual Sen. Boxer and Sen. Finegold are doing great here by not falling in lines with White House; one of the few Senators who had sense to oppose Bush's Iraq War Resolution then.

All those Democratic senators who want to back Bernanke need to look at Chief Justice John Roberts. Here is what James Fallows has to say in this regard:

"The head of the nation's judicial branch was purposefully deceptive during his "umpire" testimony. Or he had no idea what his words meant. Or he has had a complete change of philosophy and temperament while in his mid-50s. Those are the logical possibilities. None of them is too encouraging about the basic soundness of our governing institutions."

The issue is Bernanke is known Conservative, appointment of Bush and anytime in future his penchant for absolving Fed and backing big businesses / banks can come in way of implementing meaningful Financial Reforms. Already it is well known that Bernanke is opposed to Ron Paul inspired 'Fed Audit' and with every passing, as more details of AIG bail outs come out (how AIG gave away $42 Billion to fulfill at 100% obligations to big banks); it is clear that unless the Fed house is cleaned, there is no possibility of any meaningful reforms. Based on Bernanke's track record he will oppose such clean measures, even if he is in all probability liked by Market and would help to stabilize the economy.

These Democrats, Sen. Kerry and David Axelrod, are wrong to say that they do not want to make Bernanke a 'scapegoat'. No, it is not a question of making one single person 'scapegoat'; it is the question of holding each and everyone involved in this mess 'accountable'. Clearly Obama Administration and Democrats do not have any clue in this regard. As Frank Rich says in NYT, there is no hope for this bunch of Democrats unless they change, the very 'change' which is so rare in Obama reign. It is digging of 'graves' that is what is going on among Democrats...

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