The re-appointment of Ben Bernanke to the top spot at the Federal Reserve Board has received plaudits from many in the business community. Desmond Lachman, an economist and scholar at the American Enterprise Institute, wonders why. In an article written for Forbes.com, Lachmann notes that the “worst” of the subprime lending excesses occurred under Bernanke’s watch and he was also the key player in the Lehman Brothers debacle that sent the financial services industry into a lockdown. President Obama, in essence, is putting faith in the belief that Mr. Bernanke will get it right the next time, even though we are facing severe economic hazards (e.g., inflation, economic recession) that require new levels of sound judgement.
Samuel R. Staley, Ph.D. is a senior research fellow at Reason Foundation and managing director of the DeVoe L. Moore Center at Florida State University in Tallahassee where he teaches graduate and undergraduate courses in urban planning, regulation, and urban economics. Prior to joining Florida State, Staley was director of urban growth and land-use policy for Reason Foundation where he helped establish its urban policy program in 1997.