Ben Bernanke and Harry Reid

According to Senator Reid, his support for Chairman Bernanke means the Chairman would have to:

“redouble his efforts to ensure families can access the credit they need to buy or keep their home, send their children to college or start a small business.”

Such a scandal!

Imagine that! (Like, Elaine, am I using too many exclamation points?)

I’m no fan of Senator Reid, but I will take him at his word as to what he had Chairman Bernanke agree to. So?

The Fed has a dual mandate (actually more than two) and this statement easily fits into one of them. I really don’t think providing monetary conditions conducive to those activities means selling your soul in a Faustian bargain. I assume the Chairman would be supportive of those goals, reconfirmation or not, Senator Reid or not.

Senator Reid apparently has a knack for saying the truth in a manner that somehow sounds scandalous at first blush. I must admit that I flinched when I first saw this one.

Of course, the Senator must have known what the reaction would be. Yet, he apparently couldn’t help bragging that he had extracted concessions for his support.

You don’t think his own political fate back in Nevada had anything to do with it, do you?

Comments (4)

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  1. Bret says:

    The scandal is not what Reid said (though it was put poorly), but rather the fact that the Congress feels that it’s okay to extract concessions from the Fed and that Bernanke (apparently) feels that it’s okay to either be influenced by Congress or pretend to be influenced by Congress.

  2. Jack Blanchard says:

    Attended your seminar in west palm beach 1/28. I enjoyed your presentation and agree with your opinions.
    I was in banking in the late 70’s (74-79) in NYCity. I thought that was a tough time to be in banking (I was sr. v.p. marketing for The Franklin Society S & L.) My job was to raise money when Interest rates were 18%. My background was consumer goods marketing (Colgate etc.) Banking was too restrictive for my taste.

  3. Bob McTeer says:

    To Bret:

    Good point. I’m not sure how the Chairman could wiggle out of that spot.

    Bob

  4. Bob McTeer says:

    Jack:

    Small world. And I guess the main thing about interest rates is that they do fluctuate.

    Bob