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Archive for Monday, January 25, 2010

Three senators express support for Bernanke

January 25, 2010

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— A defeat of Federal Reserve Chairman Ben Bernanke’s quest for another four-year term could raise the risk of a “double dip” recession if political jousting over a successor were to drag on for months, economists warn.

But Bernanke’s prospects appeared to brighten Sunday, with three more senators, including Republican leader Mitch McConnell of Kentucky, predicting he’ll be confirmed. A vote is expected later this week.

Still, the chance of Bernanke’s defeat has unsettled Wall Street, contributing to last week’s 4 percent loss by the Dow Jones industrial average, its worst performance in 10 months. If Bernanke were rejected, uncertainty over a successor would further roil global markets, at least in the short run.

Anxiety, along with sagging investments, could cause consumers and businesses to cut spending. Joblessness, already at 10 percent, could worsen. And the recovery might fail.

Economists who fear a double-dip recession — in which the recovery would collapse into another recession — regard it as a worst-case scenario. But they don’t rule it out, either.

Comments

Richard Heckler 4 years, 10 months ago

Bernake was part of the problem with our economy going down the tubes. WE need fresh new faces not foxes living in the chicken coop.

Does anybody remember this?

  1. The Bush/Cheney Home Loan Scandal http://www.dollarsandsense.org/archives/2009/0709macewan.html

  2. What did Bush and Henry Paulson do with the bail out money? http://www.democracynow.org/2009/9/10/good_billions_after_bad_one_year

leedavid 4 years, 10 months ago

Bush/ Cheney Home Loan Scandal??????

Who was president in 1997?????

From your source:

"During the 1990s, the government made tax law changes that contributed to the emergence of the housing bubble. With the Taxpayer Relief Act of 1997, a couple could gain up to $500,000 selling their home without any capital gains tax liability (half that for a single person). Previously, capital gains taxes could be avoided only if the proceeds were used to buy another home or if the seller was over 55 (and a couple could then avoid taxes only on the first $250,000). So buying and then selling houses became a more profitable operation. "

Puff......there goes your point.

jaywalker 4 years, 10 months ago

That's a big steaming pile, merril. Shame on me for reading one line of your bs.

The griping from the left over Bernanke seems to be purely political. His re-appointment has been looming for a while now but the squawking didn't start until after Brown won Mass. While his is a political appointment, his job is much too important to play politics with and should be judged by performance alone. Re-confirm the man.

monkeyhawk 4 years, 10 months ago

merrill, once again for you. Maybe if I post this over and over you will finally get it. This is the real scandal:

“Media Mum on Barney Frank's Fannie Mae Love Connection Prominent Democrats ran Fannie Mae, the same government-sponsored enterprise (GSE) that donated campaign cash to top Democrats. And one of Fannie Mae’s main defenders in the House – Rep. Barney Frank, D-Mass., a recipient of more than $40,000 in campaign donations from Fannie since 1989 – was once romantically involved with a Fannie Mae executive.” http://www.businessandmedia.org/artic

Or this:

“Chairman of the US House of Representatives Financial Services Committee, Barney Frank, is responsible for oversight of the US mortgage markets administered by government created entities, Fannie Mae and Freddie Mac. Barney’s partner and lover, Herb Moses was a senior executive at Fannie Mae Moses wrote in the Washington Post in 1991. “On Capitol Hill, Barney always introduces me as his lover.” According to National Mortgage News, Moses “helped develop many of Fannie Mae’s affordable housing and home improvement lending programs. Of course, such programs led to the mortgage meltdown that prompted last month’s government takeover of Fannie Mae and its financial cousin, Freddie Mac.” http://foro.univision.com/univision/b

monkeyhawk 4 years, 10 months ago

More for merrill:

"So there are a variety of things you can do to constrain risk taking. There are people in this society who don’t have enough money to be homeowners and there are people whose lives are not sufficiently integrated for them to take on the responsibility… What I’m saying is this: constraints on excessive risk taking in the era of securitization turned out not to work very well, unless you sort of cut it off at the source. So, there are going to be new ways to disincent people from making the bad loans in the first place. The subprime loans? We are just going to make them illegal. And people will say: ‘Well, don’t you wish everyone could be a homeowner?’ And my answer is yes. And I wish I could eat more and not gain weight. But sometimes when I act on my wishes, it is not a good result. We will shut down those bad loans." http://www.directorship.com/barney-frank-the-third-wave/

just_another_bozo_on_this_bus 4 years, 10 months ago

"The griping from the left over Bernanke seems to be purely political. His re-appointment has been looming for a while now but the squawking didn't start until after Brown won Mass."

Wrong. Senator Bernie Sanders has had a hold on his reappointment for several weeks.

jaywalker 4 years, 10 months ago

"Wrong. Senator Bernie Sanders has had a hold on his reappointment for several weeks."

Thanks. That's one guy and the consensus has been that Bernanke would be re-appointed despite the hold-up. That is up until Brown won, now it's back to that ol' call to arms: "we need to purge ourselves of all links to Bush policies". It's nothing more than political backlash.

just_another_bozo_on_this_bus 4 years, 10 months ago

"That is up until Brown won, now it's back to that ol' call to arms: “we need to purge ourselves of all links to Bush policies”. It's nothing more than political backlash. "

If his reappointment fails (unlikely given his current bipartisan support) that may be one of the reasons, but at this point the Democrats who have come out against him publicly have all been critical of him for quite some time. There are quite a few Republicans against him, too.

Stuart Evans 4 years, 10 months ago

I say reappoint him, and then begin auditing the Fed immediately. I want him in place to answer the questions.

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