James Pethokoukis

Politics and policy from inside Washington

Bernanke Confirmation Watch

Jan 22, 2010 19:38 UTC

I would not say his support is collapsing, but it is eroding. He is going to need some GOP help to make it. Keep an eye on the “yes” votes from the Banking Commitee to see if they start wavering and how much Obama supports him in the next few days. BB is on the wrong side of the populist wave.

America’s challenge

Jan 22, 2010 19:10 UTC

From the great David Goldman:

When Reagan took office in 1981, the baby boomers were in their 20s and 30s, America had a 10% savings rate, the current account was in surplus, and America was the world’s largest net creditor nation. Reagan was able to cut taxes and finance an enormous budget deficit because the world’s demand for US Treasury securities was correspondingly large. In 2010, the baby boomers are in their 50s and 60s, America has saved nothing for a decade, the current account remains in severe deficit and the world is choking on the existing supply of Treasury securities. Cutting taxes to stimulate the economy is not as simple this time round.

Professor Reuven Brenner and I argued in the December 2009 issue of First Things that fundamental changes in American economic policy are required to emerge from the Great Recession. We proposed that the United States fix the dollar to the Chinese yuan and other currencies in order to re-orient trade flows to the developing world. We added, “We have been borrowing in order to consume; we need now to save in order to invest. We need to shift the tax burden, moving it away from savings and investment and toward consumption. We should replace individual and corporate income taxes with consumption-based taxes.”

COMMENT

Beware of unintended consequences.

Some of the perpetrators of the Loans-to-deadbeats Ponzi scheme were just as well inteded as you two gentlemen are.

Changes this massive are extremely dangerous. Always. Maybe the impact would be super-duper. But who really knows?

Better for the government just to get the hell out of the way.

Posted by proreason | Report as abusive

Bernanke could be latest victim of Massachusetts Miracle

Jan 22, 2010 14:20 UTC

It seems that support for the renomination of Ben Bernanke is falling by the day, says ABC News. Liberals in Congress want him gone. Then again, they want pretty much the whole Obama economic team gone. But Geithner and Summers aren’t up for a Senate vote. Bernanke is. And if Dems start bailing, don’t expect Republicans to save him. No politician in America gains anything by voting for Bernanke. A “no” vote is a free vote. Wall Street still loves him, though. Geithner, too.

UPDATE: Count Russ Feingold of Wisconsin as a “no” vote.

UPDATE 2: Boxer of California , too

UPDATE 3:  Nevada’s Reid is non-committal

COMMENT

Unfortnately, you are wrong about no one liking Greenspan. The fools at Time magazine like him. All the bankers, other Fed officials and bankers who never saw the crash comming like him. Almost all the hacks on CNBC, and all the bankers and businessman that benefited from the bailouts whom they interview, like him.

Posted by Andrew | Report as abusive
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