Reappoint Ben

Seven months ago, the market had fallen to a low of 6,469, representing a fall of more than 50 percent of value since the market high. Many experts believed a prolonged depression was near and some still believe we went through a “mini depression” during that time period. It was a time that called for quick and decisive action with many decisions being made on the fly.

While some of his actions were extremely questionable, Federal Reserve Chairman Ben Bernanke deserves credit. He was able to shepherd America and much of he world through a crisis that could have been disaster into only a severe recession. He was also able to do this with two different presidential administrations, which is a success that could not have been achieved easily.

However, a recent Rasmussen poll shows that Bernanke isn’t getting much of the credit he deserves. Only 21 percent of adults feel the president should reappoint Bernanke, while 39 percent believe the president should look elsewhere for a new chairman.

The same poll also found that 40 percent of Americans knew so little about him that they couldn’t even venture an opinion. Because every American has been dramatically affected by this crisis, this number is shocking, but that’s for another column.

Considering Bernanke oversaw the worst financial crisis since the 1930s, it isn’t surprising that many Americans are looking for someone to blame. However, this issue is now of extreme importance given that Mr. Bernanke’s term expires Jan. 31 of next year.

Last week, Senate hearings began to decide whether he deserves a second term as Fed Chairman. As usual, this hearing was full of grandstanding, with Senators trying to knock the Fed at every turn in an attempt to look tough on the crisis and get face time on TV.

Sen. Jim Bunning, a Kentucky Republican, said that he would “do everything I can to stop your nomination and drag out the process as long as possible.” Additionally, Sen. Bernie Sanders, a Vermont independent, said that he was placing a hold on Ben Bernanke’s nomination for a second term, a move that could slow the confirmation process.

While the crisis deserves extreme scrutiny by the government and changes do need to be made, directing the blame at Ben Bernanke is misplaced. The crisis began with Fed policies early this decade and by the time Bernanke was in office, the path toward this crisis had already been set. 

Should Bernanke have realized the danger that was coming sooner? Possibly, but hindsight is 20/20 and the type of actions that needed to be taken were so extreme that they would have been difficult to do outside of a full-blown crisis.

The fact is that the risk of further economic problems is far from done. Inflation and even a double-dip recession are still very real possibilities, and it is going to require a strong Fed chairman to guide America through the remainder of this crisis.

While he isn’t perfect, Bernanke did the best job possible during the last year, and he deserves a chance to finish the job.