Bernanke Endorses Obama - WSJ | Finance Manila - Philippines, business, tech, travel, life in the metro

Bernanke Endorses Obama - WSJ

21 October 2008

We would remember that early this week, Retired Gen. Colin L. Powell, one of the country's most respected Republicans, said the election of Obama would "electrify the world."

"I think he is a transformational figure," Powell said. "He is a new generation coming … onto the world stage and on the American stage. And for that reason, I'll be voting for Sen. Barack Obama."

Although Fed Chair Ben Bernanke did not explicitly give any such similar statement as Powell did in telling people to vote for Democratic Presidential Candidate Barack Obama, Online Wall Street Journal jumps to the assumption that his actions suggest so.

Their article goes: "Ben Bernanke apparently wants four more years as Federal Reserve Chairman. At least that's a reasonable conclusion after Mr. Bernanke all but submitted his job application to Barack Obama yesterday by endorsing the Democratic version of fiscal "stimulus.

While the Fed chief said any stimulus should be "well targeted," even a general endorsement amounts to a political green light. Mr. Bernanke certainly knows that Mr. Obama and Democrats on Capitol Hill are talking about some $300 billion in new "stimulus" spending, while President Bush and Republicans are resisting. And by saying any help should "limit longer-term effects" on the federal deficit, he had to know he was reinforcing Democratic opposition to permanent tax cuts.

Mr. Bernanke could have begged off — and would have been wiser to do so — given how much the Fed has already made itself a political lightning rod with its many Wall Street interventions. He might also have thought twice about endorsing one party's policy preferences a mere two weeks before Election Day given his obligation to preserve the Fed's independence. We can remember when tougher Fed chairmen used to refrain from adjusting interest rates close to an election for fear of seeming to be political; they would never have dreamed of meddling in campaign tax and spending debates.

Perhaps Mr. Bernanke's blunderbuss political intrusion will win him more Democrat friends, and maybe even Mr. Obama's goodwill. To the rest of the world, he has harmed the Fed and made himself less credible.", as according to wsj.

I think such a gigantic problem like the financial mess we're in merits looking at the problem in all angles, and taking into consideration solutions from all sides. Holding the party line just for the sake of fraternity or brotherhood should not be the case if a logical stimulus came from the other side, and not from the incumbent!

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