What would happen if Bernanke were actually rejected?

[Beet]

I'm not as critical of Bernanke's handling of the crisis as most, but at the same time, no one can deny the man has made serious mistakes.

Why does he deserve renomination? Even supposing his actions since the crisis has prevented a Depression thus far (which is his best argument), the mistakes he made before the crisis represent major failure. Jim Bunning is right that failure is not generally rewarded.

So could not someone else do the job of Fed Chairman? Is his mind really so indispensable, like John Galt, that the Fed would melt away without him? If so, what a fragile institution! Would he be unavailable for consultation?

What's strange is that even though he is opposed by the left, right, and center, he is still "inevitable". His re-nomination is still seen as the "responsible" thing. He still has some sort of mystical aura. Not true. If his nomination failed, it would probably batter the markets for a couple days. But they'd recover. The Fed is an institution. A new chairman wouldn't throw out every policy. But a new chairman who wasn't so directly involved in the buildup of the bubble in the Greenspan years might inspire more confidence-- or at least less disdain.

Bottom line, the man himself has admitted to mistakes serious enough that should disqualify him for confirmation. Let Obama pick someone else.

[Obnoxiously Slutty Girly Girl]

Nothing changes.

[Alexander Hamilton]

He will be replaced by a clone.

[○∙◄☻¥tπ[╪AV┼cVê└]

Some other enemy of the American people is nominated.

[Mint]

Some other enemy of the American people is nominated.

[The Duke]

Maybe things get a little worse if Summers replaces Bernanke.

Maybe they stay the same if someone else replaces.

It certainly won't get better with anyone Obama would pick.

[Swing low, sweet chariot. Comin' for to carry me home.]

the markets would NOT like it

[k-onmmunist]

There would be a meek cry of joy, then silence as his clone is put into place.

[Vepres]

He made serious mistakes, but I do credit him for doing some extremely unpopular things that may have, in fact, saved our financial system from a total collapse.

But to answer the question, policy would be similar to way it is now.

[Grumpier Than Uncle Joe]

Nothing changes.

That's right......Don't forget, markets react to what they anticipate, not the news itself.

Any rumblings of Bernanke not making it will be reflected in the market long before he leaves, then when he does it's a big yawn.....cause the next guy won't be so different anyway.

So far I haven't seen any market reaction based upon the speculation which means he's staying or the market doesn't care if he goes.

[Swing low, sweet chariot. Comin' for to carry me home.]

So far I haven't seen any market reaction based upon the speculation which means he's staying or the market doesn't care if he goes.

the market believes congress is stupid, but not that stupid...therefore the market has concluded it's all a bunch of hot air and political grandstanding...so far....

[Grumpier Than Uncle Joe]

So far I haven't seen any market reaction based upon the speculation which means he's staying or the market doesn't care if he goes.

the market believes congress is stupid, but not that stupid...therefore the market has concluded it's all a bunch of hot air and political grandstanding...so far....

That's probably true but I wouldn't expect much volatility even if it was clear he's gone...which he won't be since they won't deny Obama his re-appointment request.

[Swing low, sweet chariot. Comin' for to carry me home.]

So far I haven't seen any market reaction based upon the speculation which means he's staying or the market doesn't care if he goes.

the market believes congress is stupid, but not that stupid...therefore the market has concluded it's all a bunch of hot air and political grandstanding...so far....

That's probably true but I wouldn't expect much volatility even if it was clear he's gone...which he won't be since they won't deny Obama his re-appointment request.

if it begins to appear that his nomination is in serious danger, then I think the markets would tank and the DOW would retest 8000 within weeks, if not sooner and we would head back into recession.  One of the LAST things the market wants is Congress to be dictating monetary policy. 

There are very few adults left on Capitol Hill on either side...way too much grandstanding at the expense of the American public...to me, it seems the GOP is deliberately attempting to cause economic chaos for the next midterms.  Their comments are NOT constructive.

[Grumpier Than Uncle Joe]

There is no way I believe the market would react so violently.

[jokerman]

Probably monetary policy wouldn't get any worse.  It's not like the next Fed chair will have much to do, lol, we're going to be stuck at ZIRP for several more years.  And on the positive side, he'll be a scapegoat to relieve much populist anger that could be directed to more destructive ends.

[Brandon H]

His replacement will be just as bad. It will be just like the test of Obama's change.