Early links, Aug. 25

August 25, 2009

Ben, again

Andrew Leonard: “Unwinding the vast expansion of the Fed’s balance sheet and figuring out how to tighten the screws on the money supply without plunging the country into an another economic contraction will be a tremendous challenge. Why saddle that grief on some up-and-coming Democratic economist? It’s Bernanke’s mess. Let him clean it up.”

Barry Ritholtz: “Game theory would have it this is the safe pick, the one that you cannot get into trouble for, even if things go bad later. A new Fed Chair, in the event something went awry down the road would lead blame back to the White House.”

Brad DeLong: “I am surprised that he is being reappointed. …
It shows, I think, a seriousness about getting the policies right–or as close to right as we can–that I like to see in a president…”

Calculated Risk: “The financial system faced both a liquidity and a solvency crisis, and it is the Fed’s role to provide appropriate liquidity. Bernanke met that challenge, and I think he is a solid choice for a 2nd term (not my first choice, but solid).”

Why are the shares of Fannie Mae and Freddie Mac soaring? (The Washington Post)

Regulators are curious about those Goldman “huddles.” (Zero Hedge)

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