Buffett's own candidate for Fed chief: Ben Bernanke
Berkshire Hathaway's CEO thinks the current chairman has done a great job. Why take a '400 hitter" out of the lineup, he asks.
Berkshire Hathaway (BRK.B) CEO Warren Buffett has his own candidate: He wants Ben Bernanke to serve another term.
"If you have a '.400 hitter' in the line-up, you don't take him out," Buffett told CNBC in a joint interview with Bank of America (BAC) CEO Brian Moynihan.
Buffett said he admired Bernanke's performance during the 2008 crash and since then. "He's done a terrific job, and I think he ought to get a chance to play out a little more of his hand," Buffett told CNBC.
What about Yellen? Buffett said he didn't know her. If there's a critique of Yellen, a widely respected academic economist, it is that she is not especially visible in the political world of Washington. Among those who really don't know her: President Barack Obama, the man who would have to nominate her.
Who did Bank of America's Moynihan want as the Fed boss? He diplomatically wouldn't say. But he did say he thought the economy was improving -- steadily if slowly. It takes a lot of work to get an economy hurt so badly in the recession to turn around, he added.
Whether Bernanke wants another four years in the job isn't clear. At Wednesday's news conference after the Fed announced it wasn't tapering its $85-billion-a-month bond purchases, Bernanke would only say that he would reveal his plans soon.
The understanding in Washington for months has been that Bernanke wanted to leave office on Jan. 31, 2014, when his current term expires. He had to be talked into serving a second term. The job proved exhausting.
Bernanke was one of the key players in helping to stabilize the domestic banking and credit systems in 2008 and 2009. He also was one of the creative voices that crafted the Fed's quantitative easing programs -- the huge series of bond purchases that were supposed to help boost the economy by keeping long-term interest rates low.
The three rounds of quantitative easing have been increasingly controversial, with critics charging that ending the bond-buying smoothly, without disrupting markets around the world, will be extremely difficult.
Others say the bond-buying has helped the domestic economy in particular recover more strongly than, say, European economies.
One group that has especially benefited: Investors in stocks. U.S. equities have more than doubled since the 2009 market bottom. They hit new highs after Wednesday's Fed decision.
More from Top Stocks
Yellen is a "widely respected academic economist"? In this day and age, that's code for "Keynesian theorist with no practical experience".
I agree with Buffett, but, I suspect for a different reason. I think Bernanke should be required to stick around for another term, and take responsibility for the bizarre consequences of his actions which are just now starting to materialize.
Like one of Lady Gaga’s outfits, you designed it, you wear it Ben. Don’t worry, we’ll still know it’s you behind the mask.
Mr. Burnake needs to retire as of jANUARY, 2014 OR NOT SOONER!
Mr. Buffett you have been way to long at Congress and in the late Sen. Ted Kennedy's space.
This is one of the few times when Buffett is making comments that are very self-serving and not true. Buffett has made an unbelieveable amount of money in his lifetime, and a ton of money in the last several years almost directly related to Bernake's Fed policies. Of course Bernake would be good for Buffett because his policies are directly in keeping with the ultra wealthy and with no regard whatsoever for the average person.
Bernake has done a downright awful job and should never have been allowed to take another term. He was worse than Greenspan and that's saying something. Mark my words: the policies from the past several years will come back to haunt normal people far more than the people who have profited in recently years on the stock market will hurt when tapering finally begins and stocks come back to earth.
Yes Bernanke was appointed by Bush, he is a Republican..
Reappointed by Obama...
But, I think HE wants to leave the Chair of the FED on his own....He is not, getting thrown out.
If Janet Yellin gets appointed, more than likely she will follow closely at what Bernanke has been doing.
Be nice if people could check on school grades and where all these people went to school. Lots of fake people out there. Fellow engineer at work years ago that was suppose to have a PHD degree, newspaper man started to do story on him and checked at schools for information, turned out that he had never completed his BS degree. He was fired.
Wonder about all these people that are suppose to have a stack of degrees. Wish some place would check on all these great people and put the information where the public could see it, after all we have to pay the tab. Be nice to know what we are paying for. Would bet the world and Washington is full of phonies.
If they are so smart, how did this country get so messed up?
2008 was a pretty scary event. Without government intervention, we would've seen the end of credit, the shutdown of more than half of the nation's banks, 25% unemployment, and a complete collapse of the housing market. What would've happened? Probably the buying out of a large portion of the nation's assets by hedge funds while 95% of the people in this country would've been completely financially destroyed. The affect on the rest of the world would've been even more catastrophic.
Ben inherited a mess, no question about it. It was Greenspan the guy that really screwed up. We didn't even no what the hell he was saying most of the time. But, clearly all the signs were there while Greenspan was running the show. In fact he became super rich from all the BS he was giving and people were following him.
No poor Ben had no real choice but to do what he did or we would be 100% worse off than we are. Clearly a mess and it is not over because of no good paying jobs a the greed of Wall Street along with CEO greed.
Buffet's reason for wanting this, he knows this moron is the only one stupid enough to keep pumping $1T+ into bonds so that the market doesn't collapse until Buffet has time to get his money out of stocks and into something safer. He hasn't bought a government bond in a long time. Why? Because he knows they are fast becoming worthless pieces of paper.
According to reports, the dollar has lost 7% of its value in just the past 30 days. How do you all think that will hit you? Inflation, unemployment, Depression, Economic collapse? If you voted for all 4, congrats, you are likely correct.
Copyright © 2014 Microsoft. All rights reserved.
Traders might want to bite on BABA, but long-term investors have reasons to wait.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.