And I bet I can predict what it will say. It will be the same reading of tea leaves with a Pollyanna approach while having anxiety fits over the possibilities of QE. It will be more of the same predictably bad monetary policy thus we can expect more of the same.
I’ve noticed discussion regarding the selection of the new Fed Chairman going around the blogoshphere lately. I don’t necessarily I concur with what seems like the consensus that Yellen is a better choice than Summers out of a belief that both possible candidates have their weak points in different areas with the sum of the whole of each making them both atrocious choices for different reasons. It really is too bad to be faced with having to settle for the least bad when we most need monetary policy to work.
Up to now we have had plenty of suspects on which to pin the monetary crisis, but it will be Bernanke’s crisis for only a little while longer. After he is gone, the monetary crisis will most certainly rest squarely on the person doing the nominating, as it is the one chance to bury the crisis in the annuls of history as a thing of the past that is squandered on political pettiness. I can’t say that I necessarily regret the idea of having to switch the focus of my rather edgy commentary as Obama is quite far from the top on my list of favorite politicians (I might get to him long after I’ve run out of paper); but I truly regret that it is over a matter as serious as persistently tight money and what it does to the quality of life for average people. If I were a politician, it would certainly not be a situation I would want to own; but of course I don’t think there are many who would credit Obama with more than average intelligence, and I think that might be giving him more credit than he deserves.
This will be a short post because I’ve spent much of the last week in a war of wills with a web server. I am happy to report that I won the final battle just this afternoon. But it has left me mentally exhausted without much more to say about the politic crisis involved in the nomination of the next Fed Chairperson, or any related subject that is worth saying – or reading.