A new name for Bernanke: Hero
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It’s fashionable to criticize mainstream journalism these days, and tonight I will pile on: There isn’t enough serious and insightful coverage and analysis of the real drama in Washington right now -- the three-way argument among the Fed, the Bush administration and Congress over how best to respond to the economic mess.
More often than not, news reports -- and this blog as well -- take the easy way out. We portray the Fed and the Bush administration as one actor -- sluggish at first, now lurching toward action, while the other actor, congressional Democrats, pushes loudly for government intervention.
Not only does this miss the true drama of the moment, it’s not accurate. Thankfully, there is Lou Barnes to set us straight every Friday. Yes, he comes from the mortgage industry and has been recommending a massive government refinancing for months now. But he also watches this drama closely and sees things your newspaper might not. Like the widening gap between Fed Chairman Ben S. Bernanke (pictured) and the Bush administration. Like the elephant not in the room at the Bear Stearns hearing: where was Treasury Secretary Henry M. Paulson Jr.? (Wimping out in China, Barnes writes.)
He also admits when he makes a mistake -- people in my business hate to do that. This week Barnes corrects himself and says he now believes Bernanke is doing the right thing:
‘Since Crunch onset in August it has been hard to evaluate our economic leadership. Perfesser Bernanke has taken action from the beginning, but late, inadequate, and appeared to be detached. That judgment may have been fair through January, but has been mistaken since then. My apologies: his speech this week (must read, short: www.federalreserve.gov), his opening of the Fed’s floodgates in new and essentially infinite amount, his distance from Secretary Paulson in testimony, his refusal this time to guide Congress on fiscal giveaway (‘That is your purview...’), his blunt warning of recession, and extraordinary leadership in snuffing the Bear Stearns panic -- together easily the most courageous performance by a Fed Chair since Volcker in ’79. Given the lack of public support by the Administration, maybe best-ever.’
He also chucks a high, hard one directly at the president, for failing to provide economic leadership at a time when it is so clearly needed. I don’t care if he is a mortgage broker or a bookie, Barnes is the best Fed watcher in the business for my money.
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: Bloomberg News