Monday, October 24, 2005

Bush names "Helicopter Ben" Bernanke to Fed

I'm not really surprised Bush picked Bernanke amongst all the other balding candidates. Seems a good choice given his apparent speciality: the tug of war between deflation and inflation. We're going to need that in the coming months, if not now, I believe.

I was kind of hoping for Roger Ferguson to get the nod. I was impressed at the way he handled the Fed and the markets after 9/11 while he was acting chairman (Greenspan was out of the country.) Alas, it would be tough to sell Ferguson in the MSM given that he photographs like a mildly retarded Al Roker.

What is interesting about this pick is that it represents a fundamental shift in Greenspan's tactics in handling the Federal Reserve Bank and interest rates. Greenspan used a risk based approach and was adverse to setting inflation targets. Bernanke is a proponent of inflation targets.

I'm a financial junkie, but a realistic one. I know this stuff is boring, so I'm just gonna stop right now.