There is all sorts of scuttlebutt over getting rid of Ben Bernanke. Two Democratic senators, Barbara Boxer and Russ Feingold both started stirring up things on Friday about not re-confirming the current Federal Reserve Chairman. Before that, there were other democrats including Senate Leader Harry Reid who expressed doubts. There are already Republicans who place the financial woes on the country onto Bernanke, saying he should have known before hand.
While the Democrats and Republicans play political reindeer games, some of those who have forgotten more than most people know about all things financial seem horrified at the prospect of not having Bernanke at the helm. Warren Buffett, the financial mogul, is one such person. He has said if Bernanke is not reconfirmed he will immediately begin to sell off stock and put his money elsewhere. Wall Street dropped 4% last week over this fighting as well as Obama’s firmly administered bank spanking.
According to Foxnews.com:
Bernanke met with Reid, D-Nev., on Thursday as Democratic and Republican leaders surveyed senators to tally votes on the nomination. Reid said Friday that his support “is not unconditional. … The Senate will continue to demand visible and responsible results for the people we represent.”
Bernanke needs 60 supporters to win approval for another four-year term, meaning the White House will have to rely on at least some Republican senators.
“A few Democrats have publicly said they won’t vote for Mr. Bernanke’s appointment, so you need Republican support,” said Senate Majority Whip Richard Durbin, D-Ill.
Democratic Sens. Byron Dorgan of North Dakota, Jeff Merkley of Oregon, Barbara Boxer of California and Russ Feingold of Wisconsin are among those who say they plan to vote against the nomination.
“It is time for a change — it is time for Main Street to have a champion at the Fed. Dr. Bernanke played a lead role in crafting the Bush administration’s economic policies, which led to the current economic crisis. Our next Federal Reserve chairman must represent a clean break from the failed policies of the past,” Boxer said in a written statement Friday.
Sen. Bernie Sanders, a Vermont independent who votes with Democrats, has led the charge from the left against Mr. Bernanke and also plans a “no” vote.
Other folks I know personally who deal with finance and Wall Street daily are very worried that politics is going to tank the slowly recovering economy. Many with financial smarts back Bernanke while admitting to a few unforeseen missteps along the way.
The White House said today that it feels it has to votes to reconfirm Ben Bernanke. Oddly enough, through all this fighting, Bernanke is a Republican who was appointed by George W. Bush. Investors should watch this maneuver very closely. Bernanke’s term runs out January 31. (ssshhhhh don’t tell Rush but Bernanke is also Jewish.)