Bernanke in the saddle again

President Obama has sentenced Ben Bernanke to a 4-year term as head of the Federal Reserve. While the decision was made to provide continued stability to the ecomony, it was probably because Bernanke knows where all the economic landmines are likely to be buried. Bernanke is alternately reviled and revered for his part in the Economic Meltdown that is now being called The Great Recession. Obama made the announcement during his vacation in Martha's Vineyard and the appointment will have to be approved by the Senate with Christopher Dodd vowing to hold "a thorough and comprehensive confirmation hearing.” The announcement was timed to give the markets the Obama Bump and to get ahead of White House deficit projections which put the deficit at $9 trillion over the next decade. While Bernanke promised "to help provide a solid foundation for growth and prosperity in an environment of price stability" the real test is if he can create the conditions for a healthy economy that lifts as many boats as possible while avoiding the danger of the tsunami of hyperinflation.