Roach builds a case against Bernanke
Stephen Roach has a nearly 1000-word piece in the FT slamming Obama’s decision to re-appoint Ben Bernanke as Fed Chair. He calls it a “very shortsighted decision” and goes on to list what he perceives as fundamental flaws in Bernanke’s thinking prior to the Lehman bailout. It’s worth the read. (For the record, I’m for the reappointment since Bernanke is the best one out there (at least among the names being floated about as possible successors) to engineer the exit strategy, which is going to depend on market confidence – something Bernanke enjoys.
But it made me wonder if Roach is readying for a return to the U.S. considering the amount of ink spilled on Bernanke coupled with celebrity status of other perma-bears like Nouriel Roubini. He’s currently chairman of Morgan Stanley Asia.
Could also be that he has a book, The Next Asia, coming out next month and is looking to get his name out there as much as possible before the release.