We may have Harriet Miers to thank for the Bernanke era. Only three weeks ago, the White House said that it was "broadening its search" for a new Fed Chairman, looking for someone in agreement with the administration's economic policies, and someone with whom the president would have "personal rapport." Then, suddenly, we got one of the four mainstream guys.
The bond market gave its highest praise: it did nothing – although the only nasty line about Bernanke came out of the bond market (of course). "Greenspan was a maestro; this guy is a music teacher." Stocks soared 160 Dow points, indicating relief of fear of a Bush crony, but temporarily forgetting that any non-crony is going to whack the economy.
Bernanke's first words as nominee were to emphasize the need for continuity, exactly the right thing to have said. Too bad he won't be able to deliver.
Read the entire Lou Barnes Inman News article