Fair. Balanced. American.

Wednesday, January 27, 2010

The rewards of conciliation

Obama picks Bush's Fed chief. Republicans now get to play the populist card against a man they voted to confirm. Left holding the bag? Why, the President, of course. And the Democratic legislators who back him.
Republican senator said Tuesday that documents showing Federal Reserve Board Chairman Ben Bernake covered up the fact that his staff recommended he not bailout AIG are being kept from the public. And a House Republican charged that a whistleblower had alerted Congress to specific documents provide "troubling details" of Bernanke's role in the AIG bailout.

Sen. Jim Bunning (R-Ky.), a Bernanke critic, said on CNBC that he has seen documents showing that Bernanke overruled such a recommendation. If that's the case, it raises questions about whether bailing out AIG was actually necessary, and what Bernanke's motives were.
The Fed chief isn't evil but he's hardly indispensable. And there's no political upside to his renomination.

The President should ditch Geithner and Bernanke by 5 pm, announce their high-profile replacements, and go massively populist tonight. It's time to see some vision and firmness from a President who seems to have lost both. He may not have another chance to (positively) change perceptions of his leadership before the election.


omen said...

krugman, mr. liberal, endorses bernanke being reappointed.

Sini said...

Well, it's done now. Guess we'll just have to move on. But I'd never trust a GOP Fed chairman not to screw me over when it was time to run for re-election.