Friday, January 22, 2010

Bernanke Fizzle out

We get it the games played in Washington - Sen. Finegold backing out Bernanke candidacy while White House still backs him.

The game is after MA Senate election, there is an acute need for Democratic Politicians to show the distance from Obama and White House. That is what is at play here. Chances of Bernanke getting accepted for the second term are dwindling every passing day. That is good and in no uncertain terms Bernanke needs to go. But aha! if Obama withdraws that candidacy he will deprive these Congressional Members of an easy route of 'glory' - the glory of showing 'independence' from Obama White House. Hence the kabuki.

What a fall for the Man of Hope. In one year, instead of changing the Washington, it has changed Obama and he is at full speed to play the same games.

Why is not President simply withdrawing Bernanke candidacy straight without any drama since that is the right thing to do here? Why is he not simply 'firing' Geithnier instead of steadily drawing him in the corner that Geithner is worried about Volcker Bank plans and paint him black? Man, why waste all these public cycles. Do some clean thinking and surgical actions in one go. This is all really disappointing and the Obama White House has become all 'drama' and no consequential actions. Unability to fill these positions is not a valid argument - that is governance, to fill these positions by competent and timely professionals. White House is not doing good here.

Update - With Sen. Boxer as well as indicating her opposition to Bernanke renomination as Fed Chief, the opposition is gathering momentum and looks like it is a matter of time before Bernanke withdraws it or simply time passes to bring the hearing (Jan end is the deadline). So finally Democratic Law makers are making something good, meanwhile White House continues to be a laughing stock. Well, I case someone needs to continue the Bush tradition of 'clueless' commander-in-chief!

Update 2 - After little of thought, it is clear to me that; one has to ponder about support for Bernanke in GOP. Some GOP Senators have strong support to him. Bernanke is Bush appointee and by and large Conservative, siding with Big Banks and Big Businesses. So it is not that easy that GOP Senators would so easily back out. In short the situation is not 41 GOP + few Dems and hence the game is over. Further, what if newly minted Sen. Scott Brown of MA extends his support? He being that Super Hero and Super Senator for the moment, President Obama will be obliged to grant those wishes. So all in all, we will need more Senators to 'defect / peel off' before Bernanke ship goes down.

Contrary to David Brooks who compared Health Care Reform Bill as Iraq situation, actually the Bernanke vote is shaping more along the lines of Iraq war resolution - at least so far. Both Finegold and Boxer had voted against the Iraq war bill and both are at present against Bernanke. Until Bernanke support changes from Iraq war bill support structure to more broader pattern, Bernanke is not out yet. He may still be able to pull off his nomination.

Update 3 - Here

No comments: