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No Third Term For The Chairman

Tyler Durden's picture




 

While the theater of the presidential election hits peak season, and InTrade odds for this candidate or that are approaching flash crash territory, the one person who truly runs not only the US, but the entire "developed" world, Ben Bernanke, is going nowhere. At least not until January 2014. At which point he may be going somewhere - retirement. Reuters cites the NYT: "U.S. Federal Reserve Chairman Ben Bernanke has told close friends he probably will not stand for a third term at the central bank even if President Barack Obama wins the November 6 election, the New York Times reported." In other words: the republican Fed Chairman who mysteriously became a Democrat president's bestest friend (and has been publicly threatened by every other GOP candidate, including Romney, although that would be merely to replace him with Bill Dudley, not Glenn Hubbard)  that $4 trillion that the Fed will have in assets at the time of Ben's departure, and $5 trillion at December 31, 2014, just became someone else's problem. Good luck to that someone else unwinding a Fed balance sheet which as we explained previously, will at one point in the next 2 years hold well over half of the marketable US Treasury debt inventory. How the sale of this inventory will happen in a time of spiking rates (because that's what the Fed wants - inflation) is literally anyone's guess, because in practice it will never happen.

From Reuters:

Republican presidential nominee Mitt Romney has already said he would not re-nominate Bernanke if he wins the presidency. Bernanke's term as chairman ends in January 2014.

 

The Fed's unconventional efforts to spur growth have been criticized by many who argue that they threaten future inflation and abet profligate spending in Washington.

 

Treasury Secretary Timothy Geithner has already made it clear he wants to leave by the end of the year.

 

Former Treasury Secretary Lawrence Summers would be at the top of Obama's list to replace Bernanke if he did not offer for re-nomination, columnist Andrew Ross Sorkin wrote.

 

Longer shots include Janet Yellen, the vice chairwoman at the Fed, and economist Alan Krueger, a former assistant secretary of the Treasury for economic policy -- or even Geithner, Sorkin wrote in his "Dealbook" column.

 

Glenn Hubbard, who headed the President George W. Bush's Council of Economic Advisers, is often mentioned as Romney's most likely nominee for the Fed job.

Nothing much to add here: when even the man who created this mess can't wait to get out, that's when it is time to finally lift the offer on that central European real estate in a quiet Tyrolean region you have been eyeing for some time.

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Tue, 10/23/2012 - 07:54 | 2912098 GetZeeGold
GetZeeGold's picture

 

 

Ben Shalom.....four more years.

 

The Sheriff approves this message.....he's a rightous dude. 

Tue, 10/23/2012 - 08:07 | 2912126 MillionDollarBonus_
MillionDollarBonus_'s picture

Summary of the achievements of Benedict S. Bernanke:

  1. Succeeded in fostering maximum employment and price stability
  2. Saved Europe from recession with dollar swap lines
  3. Put America back on the road to recovery
  4. Avoided a double dip recession
  5. Kept inflation under control
Tue, 10/23/2012 - 08:10 | 2912132 LongSoupLine
LongSoupLine's picture

lol MDB...perfect satire listing.  nice job this morning.

Tue, 10/23/2012 - 08:15 | 2912147 ndotken
ndotken's picture

MDB, you forgot #6:

6.  Inflated the Fed's balance sheet to such astronomically unsafe levels that when the impending bubble finally does burst, the resulting economic implosion will be beyond the scope of anyone's wildest nightmare.

Tue, 10/23/2012 - 08:31 | 2912179 Thomas
Thomas's picture

There are three kinds of intellects: those who can do math and those who cannot.

Tue, 10/23/2012 - 09:00 | 2912283 Big Slick
Big Slick's picture

In a perfect world, The Bernanke would be forced to be prez of this crap pile until it was fixed.

(Maybe that's what hell has in store for Him)

Tue, 10/23/2012 - 09:37 | 2912423 malikai
malikai's picture

In a perfect world he would be in prison. But since this is hell, he is operating the flame thrower for his masters.

Tue, 10/23/2012 - 13:18 | 2913172 TruthInSunshine
TruthInSunshine's picture

Bernanke wants to quiety spend time with his small family, in relative privacy,and certainly not be in the limelight, when the comparisons to 1929 through 1937 are finally being made by the MQLSM (Main & Quite Lame Stream Media).

Tue, 10/23/2012 - 08:11 | 2912135 insanelysane
insanelysane's picture

6. Caused a crash that destroyed the entire economy. (coming Fall 2013)

Tue, 10/23/2012 - 08:22 | 2912159 new game
new game's picture

7) ben for prez, paul for v.p.

mdb for treas sec.

Tue, 10/23/2012 - 08:33 | 2912183 dcb
dcb's picture

OH, that would be the second time he did this

Tue, 10/23/2012 - 09:11 | 2912302 BeetleBailey
BeetleBailey's picture

Summary of Effects of the Reign of Benjie Shalom Berschmanke

1. Succeeded in destroying whatever value was left in the clown buck.

2. Became Chief Ass-Wiper in the inner bowels of the Chinese hierarchy's toilet shack (using aforementioned clown bucks disguised as....well, clown bucks)

3. Did not darken the door of any supermarket, retail store or business, leaving the shopping to his butler, Mr. Magoo, and his maid, Ms. Tri-focals; both armed with no limit SNAP cards, and told not "worry about the prices, and not to keep receipts".

4. Lied with aplomb to a Congress numerous times, as they were so dazzled as to not calling the beard on it - as they are all liars too.

5. Kept the cost of iPoo low, as to the aforementioned ass-wiping expertise.

Tue, 10/23/2012 - 09:18 | 2912359 solgundy
solgundy's picture

Bernanke won't stand for another term.......lmao.....when you are about to be run out town on a rail, get out infront of the mob & turn it into a parade.....

Tue, 10/23/2012 - 10:52 | 2912724 LMAOLORI
LMAOLORI's picture

 

 

Bingo you win an up vote Romney said he would give him the boot. I like how they speculate on who will replace him how the hell do they know? It all depends on which Mainstream News you believe I guess.

Casting Dual Roles, at Treasury and the Fed

snip

However, Mr. Bernanke has told close friends that even if Mr. Obama wins, he probably will not stand for re-election.

 Lots of names are regularly bandied about for both positions. But they are not always thought about in tandem. So here is a field guide to handicapping the next Treasury secretary and Federal Reserve chairman:

 The top Democratic name that pops up when discussing the Treasury position is usually Erskine Bowles, the former White House chief of staff under President Bill Clinton who reinvented himself with his Simpson-Bowles bipartisan plan to reduce the deficit. The business community, on both sides, appear to love the plan and say they love him.

Now, on to the role of Federal Reserve chairman under President Obama.

It is slim pickings. At the top of the list is Lawrence Summers, Treasury secretary under President Clinton and director of the National Economic Council for President Obama. He’s a serious economist who knows his numbers and has a worldview that is similar to the president’s. He would be expected to continue the loose money policy of Mr. Bernanke.

There are a couple of other names in the Democratic economist world, but virtually all of them would be long shots: Janet L. Yellen, the vice chairwoman of the Federal Reserve. She would be the first woman to run the Federal Reserve and could provide some continuity. Alan Krueger, an economist who was briefly an assistant secretary of the Treasury for economic policy under President Obama, is less of a classic choice, but is considered highly by the president.

If you want to be really daring, let’s add one more name to the list, perhaps the perfect candidate from the president’s perspective: Mr. Geithner. He would have had a year to recover from his current position and may have tired of the speaking circuit. Given his former role as the president of the Federal Reserve Bank of New York during the financial crisis, he would bring steadiness to the job with Mr. Bernanke’s departure, and a level of comfort for the president.

Now, if Mr. Romney wins the presidency, the chessboard for possible appointments for Treasury secretary and Federal Reserve chairman becomes a little more crowded.

Glenn Hubbard, who headed the Council of Economic Advisers under President George W. Bush and is a top adviser to Mr. Romney, is often mentioned as a top candidate for the Federal Reserve job — and the Treasury secretary job. It is likely that he would get one of the two.

So the question is, who gets the other? If Mr. Hubbard takes the Treasury secretary job, the other candidates for Federal Reserve chairman are N. Gregory Mankiw, who also headed the Council of Economic Advisers, and John B. Taylor, a Stanford economist, though he is considered more of a long shot.

If Mr. Hubbard gets the Federal Reserve job, however, the Treasury role becomes wide open.

Robert B. Zoellick, former president of the World Bank, is said to be among the names in the hopper for the Treasury secretary job. (He was previously a managing director at Goldman Sachs, but his role at the World Bank may have cleansed him of his Wall Street association and Mr. Romney is less concerned about ties to finance given his own background.)

Also on the list is Rob Portman, the senator from Ohio, who has become very close to Mr. Romney and knows a spreadsheet: he was director of the Office of Management and Budget under President Bush. Whether Mr. Romney would be willing to give up Mr. Portman’s seat in the Senate is a question mark.

Finally, there is Mike Leavitt, the former governor of Utah, who is a close confidant and adviser to Mr. Romney. He is likely to get a big role in Mr. Romney’s cabinet.

Oddly enough, given Wall Street’s support for Mr. Romney, there are very few bankers or other business people on his short lists.

Tue, 10/23/2012 - 08:24 | 2912165 Ruffcut
Ruffcut's picture

Running out of lies and bullshit.

Tue, 10/23/2012 - 08:31 | 2912180 Thomas
Thomas's picture

He's worried as Pimco goes bullish on gold that somehow he won't be able collect on the debt owed to him.

Tue, 10/23/2012 - 07:55 | 2912099 malikai
malikai's picture

How the sale of this inventory will happen in a time of spiking rates (because that's what the Fed wants - inflation) is literally anyone's guess, because in practice it will never happen.

You're beating a dead horse. But I guess the unitiated could gain from it. However, I suppose they figure rates will never spike as long as they are in control. Of course, 'them in control' always lasts forever, doesn't it?

Tue, 10/23/2012 - 08:07 | 2912124 GetZeeGold
GetZeeGold's picture

 

 

Much like Ben is flogging PMs this morning? Excuse me but if Ben is out....where am I going to get my cheap gold?

Tue, 10/23/2012 - 08:31 | 2912181 Thomas
Thomas's picture

Today is "sell fucking anything you can sell" day.

Tue, 10/23/2012 - 09:06 | 2912299 fuu
fuu's picture

Only if you have to, otherwise today is just overcast, slightly rainy, and there is a sale on gold and silver.

Tue, 10/23/2012 - 07:54 | 2912100 Flounder
Flounder's picture

St Anton is a nice place for schussing.

Tue, 10/23/2012 - 07:53 | 2912102 swissaustrian
swissaustrian's picture

Welcome to Goldman! Thanks for all the goodies...

Tue, 10/23/2012 - 08:09 | 2912128 GetZeeGold
GetZeeGold's picture

 

 

Subsidized gold.......Mmm Mmm.....good.

 

Now could you do something about gas....I don't care what Bam Bam sez....that crap is way too high.

Tue, 10/23/2012 - 07:54 | 2912103 Cursive
Cursive's picture

Is this why the futes are red this morning?  Benron The Great Stock Market Manipulator says he's going to the farm?

Tue, 10/23/2012 - 07:57 | 2912111 swissaustrian
swissaustrian's picture

Wait until robots find out who is going to replace him. I guess the Paul Krugman rumor will be published arround 3 pm ET.

Tue, 10/23/2012 - 08:18 | 2912154 Mae Kadoodie
Mae Kadoodie's picture

Ben=Rat

Tue, 10/23/2012 - 07:54 | 2912104 slackrabbit
slackrabbit's picture

Ben will be replaced by a HFT drone or just a killer drone http://youtu.be/SNPJMk2fgJU   or both...

 
Tue, 10/23/2012 - 07:55 | 2912106 swissaustrian
swissaustrian's picture

Obama would replace him with Larry Summers, lmao.

http://www.youtube.com/watch?v=SeFxUIADiKU

Tue, 10/23/2012 - 07:59 | 2912110 francis_sawyer
francis_sawyer's picture

At least the humming & whirring of the printing presses might keep him from nodding off on the job... Plus, the box of doughnuts look like the "0's" he'll need for the new currency...

Tue, 10/23/2012 - 08:52 | 2912258 hedgehog9999
hedgehog9999's picture

That fat slob would be worse!!!!

But at least he will preside when the shit splashes on his fat face after hitting the fan ................

Tue, 10/23/2012 - 07:54 | 2912108 f16hoser
f16hoser's picture

Dump the Biotch!

Tue, 10/23/2012 - 09:16 | 2912340 Chupacabra-322
Chupacabra-322's picture

How about no Federal Reserve Charter re newal for 2013 and beyond.

Tue, 10/23/2012 - 07:57 | 2912109 Bobbyrib
Bobbyrib's picture

The Economist (still a shitty magazine) cover where Alan Greenspan is in a relay race handing a stick of dynamite that has been lit to the sucker in front of him and all you can see is his hand comes to mind. The next guy is even more fucked than Bernanke, who fucked up the economy even worse than the housing bubble economy he inherited from Greenspan.

Tue, 10/23/2012 - 08:34 | 2912186 machineh
machineh's picture

It's gonna be a great sequel:

Chairsatan II -- For a Few Trillion More

Tue, 10/23/2012 - 07:58 | 2912112 new game
new game's picture

a little late; the printing is done printed...

when the dirty shirt gets soiled beyond recognition, well, ben will be the man that studied the drepression

and with kens/krug doctrine fully deployed took er down single handedly...

history repeating, just need a war, ah what is that i hear over there?

another false flag, petro dollar getting desparate...

print us a war ben, tptb need to lend some money for arms-crank it the fuck up-all for humanity, of course...

all so predictable and truely a sad stmnt about humanity...

Tue, 10/23/2012 - 08:01 | 2912114 fonzannoon
fonzannoon's picture

if he is smart he will have vanished like a fart in the wind by the time the next guy gets this thing dumped on his head.

Tue, 10/23/2012 - 08:36 | 2912190 Dr. Engali
Dr. Engali's picture

If it hasn't all blown up before then. Let's hope that is the case.

Tue, 10/23/2012 - 08:02 | 2912117 lolmao500
lolmao500's picture

Ben just doesn't want to reap what he sowed.

Tue, 10/23/2012 - 08:04 | 2912121 Rentier
Rentier's picture

Ben figures it's time to pull a Greenspan and bail before the next leg down in the economy comes from his failed policies just like Greenspan did.

 

Tue, 10/23/2012 - 08:10 | 2912133 lolmao500
lolmao500's picture

Yeah well, he won't avoid the backlash even if he flees to Europe. Someone, at some point, will get payback and Ben will beg like the little bitch he is.

Tue, 10/23/2012 - 08:09 | 2912131 gjp
gjp's picture

I sincerely hope with every fiber of my being that that wish is not fulfilled. If there is any justice, this thing will fall apart on his watch. Surely two more years is enough?

Tue, 10/23/2012 - 08:43 | 2912221 a growing concern
a growing concern's picture

Gotta be.  I don't see how they can keep this thing levitated for 6 more months, let alone 2 years.  They now throw trillions at the market and the bump lasts for a few days.  Unless we start talking about quadrillions soon, I think Ben will be at the helm when this sinking ship goes vertical.

Tue, 10/23/2012 - 08:05 | 2912122 MrBoompi
MrBoompi's picture

It's really an easy job.  All you have to do is inflate the money supply and bail out who you're instructed to bail out.

The hardest part is lying in public that your "decisions" are intended to either keep prices stable or improve employment.

There are plenty of people qualified enough to take orders from the financial elite.

Tue, 10/23/2012 - 08:06 | 2912125 Sandy15
Sandy15's picture

When Romney does well in the polls, The Bernack stops pumping the market so much....... hmmm, futures down after Romney wins 3rd debate......... could this be Benny having to dump whats on his books before the truth comes out.

 

Let's hope after Jan 2013, Benny is unemployed!

Tue, 10/23/2012 - 08:07 | 2912127 LongSoupLine
LongSoupLine's picture

If Dudley is truly the replacement, I will sell a kidney for more gold. That fuck is twice as bad as Bernank...if that's even possible.

Tue, 10/23/2012 - 08:12 | 2912144 swissaustrian
swissaustrian's picture

None of the likely candidates is any good. They're all mad printers and that's exactly why they're beeing considered.

Tue, 10/23/2012 - 09:14 | 2912309 fuu
fuu's picture

His replacement would have to come form the board of directors.

 

  • Bernanke 1/31/20
  • Yellen 1/31/24
  • Duke 1/31/26
  • Tarullo 1/31/22
  • Raskin 1/31/16
  • Stein 1/31/18
  • Powell 1/31/14
Tue, 10/23/2012 - 09:20 | 2912349 wearef_ckedwith...
wearef_ckedwithnohope's picture

Yes, Larry Summers - excellent choice.

Wasn't he the guy who, before he was forced to resign as president of Harvard, came up with this barbaric statement to the effect:

 

-  Innate differences between men and women might be one reason fewer women succeed in science and math careers  -

 

The fat man was also responsible, along with Robert Rubin, for pushing for deregulation.  Yes, he would make an excellent Fed chairman. 

 

 

Tue, 10/23/2012 - 09:23 | 2912380 Cpl Hicks
Cpl Hicks's picture

Ben Stein....hell yes!

Tue, 10/23/2012 - 09:29 | 2912401 fuu
fuu's picture

Win Ben Stein's Warez was the name of that one...

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