It appears the Senate majority leader Harry Reid has succeeded in ensuring at least 4 more years of asset bubble prices in America, by forcing enough Senators to vote for the architect of the single greatest episode of household wealth destruction (first of many) in 80 years. To wit from Dow Jones:
Senate Majority Leader Harry Reid (D., Nev.) said he hopes the Senate can vote Thursday or Friday on the nomination of Federal Reserve Chairman Ben Bernanke for a second term.
The Senate on Tuesday continued to debate legislation to raise the nation's debt ceiling to $14.294 trillion and will likely not be able to complete work on that measure until Thursday at the earliest, Reid said Tuesday.
Reid said he wants to suspend legislative activity for one day Wednesday, in deference to Senate Republican meetings to discuss party strategy.
Following a final vote on the debt limit bill as early as Thursday, Reid said he wants to move to the Bernanke nomination.
It is still unclear if this is yet more posturing by the democrat to make it seem like the reconfirmation vote is a done deal.
And it is good to know that Reid has extracted massive concessions out of what is now an obviously politicized Federal Reserve, ensuring reelection in a quid pro quo, which will guarantee that banks face the same catastrophe from lending out too much money to unqualified borrowers, as culminated with Lehman's bankruptcy previously. As Reid disclosed:
"I made it clear that to merit confirmation, Chairman Bernanke must
redouble his efforts. He has assured me he will soon
outline plans for making that happen, and I eagerly await them."
Which begs the question: just how much is Mr. Reid's financial health tied in with this redoubling of efforts in the perpetuation of the credit and housing bubble, and did he disclose all of his extensive conflicts of interest? Perhaps Mr. Reid should have pointed out all this to his fellow Senators, of whom he demands that they vote against their conscience, and against the voice of the vast majority of their constituency, just so his millions of dollars in real estate holdings do not lose value.
We present Harry Reid's Senate Financial Disclosure Report: we find particularly interesting disclosure on pages 8 and 9 "Non-publicly traded assets and unearned income sources."
As Harry himself discloses, the price of failure in Bernanke's renomination is substantial: according to the above disclosure the valuation of real estate assets is anywhere between $1.8 million and $3.2 million - it would appear to us that this is quite a material amount of "motivation" to ensure that the same lax credit policies that got America to the current overvalued real estate situation persist, and that Mr. Reid manages to offload his "non-publicly traded assets" to some unwitting idiot (financing contingency most definitely welcome) who is able to take out an Option ARM and finance the purchase of Mr. Reid's 54.1% interest in 55.1 acres of Pat Sur. 2605, Srchlt, NV, 82% of Patented Mining Claims in Srchlt, NV, 160 acres in Bullhead City, AZ, and many other holdings.
Those curious for more detail about Mr. Reif's real estate holdings can take a look at the following Disclosure Report Supplement:
So, dear senators, the question becomes: is this the type of conflicted person you want to be getting your marching orders from when making the most important choice in your political careers? Even if the answer is yes, we hope that Senator Reid provided all of you with the information that his disclosed CRE assets will likely suffer a significant value drop should Bernanke not be reappointed - after all the Fed's number one focus for the duration of Bernanke's second term will be how to pretend that the situation in CRE (let alone Option ARM resets) is manageable and that CRE is a good value proposition (for all those who wish to buy Mr. Reid current commercial real estate assets).