When it comes to Glenn Hubbard, the man needs no introduction, at least to those who have watched the Charles Ferguson seminal movie 'Inside Job.' Indeed, the extensive connections of the Dean of the Columbia school of business to the financial industry is well known, a fact which served as the basis of Ferguson's question: just how corrupt is America's elite educational establishment, and just how much of a factor in the perpetuation of the status quo is Wall Street's puppet control over each generation of rising financial and economic thinkers.
For those who are unaware, Hubbard also happens to be presidential candidate Mitt Romney's top economic advisor. The reason why Hubbard has suddenly made the headlines, is because of his overnight statement that contrary to what the potential future president has said, namely that Bernanke's days would be numbered under a Romney presidency, and that the Fed would be audited, Glenn has taken the other side of this argument, and told Reuters that Bernanke should "get every consideration" to stay beyond January 2014, when Ben's term expires. But why? Well, for the answer to this particular question, we have to go back to that long ago year 2004, when Glenn Hubbard together with current Fed president, and former chief Goldman chief economist Bill Dudley, authored a white paper bearing the Goldman sachs logo, titled "How Capital Markets Enhance Economic Performance and Facilitate Job Creation." In a word: for Mr. Hubbard (as well as for Mr. Dudley, Goldman Sachs, and thus, the New York Fed) it is all about the capital markets.
But it is one thing to appreciate capital markets in their pure form, without crony capitalism's visible hand bailing out those who after pocketing billions in bonuses are bailed out when their bets turn sour. It is something totally different to encourage a broken system in which the motto has, for the past 4 years, been, "heads i win (and am bailed out by my co-author), tails you lose."
Who else has demonstrated a tremendous propensity to focus solely on the farce that US capital markets have become, over and above other mandates such as inflation and unemployment? Why Federal Reserve chairman Ben Bernanke, who in a 2010 Washington Post oped made it very clear that since the Fed is powerless to do much about either inflation of jobs, the least he can do is push the Russell 2000 ever higher, benefitting those, increasingly few, who still own stocks and whose equity is concentrated in US corporate equities: essentially the only tranche in capital structure which will benefit from infltion. In fact, the more inflation, the better.
So the next time one wonders what is the difference between Glen Hubbard (and ostensibly, his advisee, Mitt Romney), Ben Bernanke, and Bill Dudley, don't. They are, for all intents and purposes, the same person.