Stock market futures are trading almost 1% higher in overnight trade as the banks can breathe a big sigh of relief over the Bernanke reconfirmation vote. The friendliest big banker of all-time will surely continue to prime the liquidity pump at the Fed and inflate bank balance sheets. After all, it’s good for Wall Street so it must be good for Main Street, right?
This so-called expert on the Great Depression completely missed the Great Recession coming and then took credit for saving the world from a second Great Depression despite few signs that his actions have actually done anything to help the recession on Main Street. What we have learned over the course of the last year is that Bernanke actually worsened the problem of too big to fail, has failed as a regulator and has only increased the financial strains on a government that is already in over its head. Nonetheless, what’s good for the banks is good for Wall Street as we see the futures soaring. Right?
Unfortunately, as we’ve learned over the course of the last year, what’s good for Wall Street is not always good for Main Street. The boom/bust policies of the Federal Reserve have not worked over the course of the last 15 years and the public wants real change. More unfortunately, President Obama continues to ignore the cries for change that he promised. This recession he “inherited” from President Bush can be largely blamed on Bernanke and with his staunch support of Bernanke in recent days, it’s time for Obama to begin accepting this recession as his own. Obama has made his bed with Bernanke. Let’s see how well he enjoys having a bearded man at such close quarters. As for the rest of the Senators who vote for Bernanke this week – unfortunately, many of them don’t have the luxury of waiting three more years for an economic recovery as the public will surely remember their names in November. And yes, the topic of jobs, bank bailouts, and the Fed will be very fresh in the electorate’s memory and almost certain to dominate decision making….