"Liquidity now, liquidity tommorow, liquidity forever!!"

Q: When can you take a position, do so terrible at it that you end up fulfilling the exact opposite of the alleged goal your job is supposed to have, prompting people who previously didn’t even think about it to question why your job exists at all, and still get recommended to keep it?

A: When that position is Federal Reserve Chairman:

U.S. President Barack Obama will nominate Ben Bernanke to a second term as chairman of the Federal Reserve Tuesday, keeping him on the job of guiding the world’s largest economy out of its deepest downturn since the Great Depression.

Obama will make the announcement in Massachusetts with Bernanke at his side and will praise Bernanke’s “bold actions” to save the financial system from collapse, a senior administration official said Monday.

Bernanke, whose appointment to a new, four-year term as head of the U.S. central bank must be confirmed by the Senate, has flooded crippled financial markets with hundreds of billions of dollars in Fed liquidity and stepped in to attempt rescues of failing financial institutions such as Bear Stearns and AIG.

Obama’s Democrats control the Senate, but Bernanke has faced criticism from lawmakers of both parties who say he has gone too far in extending Fed support that will be difficult to unwind, threatening future inflation.

Yeah, those were some bold actions alright.  So bold in fact that the bill to audit the Federal Reserve currently has enough co-sponsors in the House to pass.  Considering how the Fed came to exist in the first place, using its power in such a way that so many in congress suddenly feel the need to at least pretend they give a fuck what it does reeks of Fail.

BTW: I love how transcripts of these kind of announcements and speeches end up leaked ahead of time.  The more reminders that politicians, like actors, make their living reading nonsense off a script, the better.

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About b-psycho

Left-libertarian blogger & occasional musician.
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