Is Bernanke history?

It is my understanding that Romney has indicated that Federal Reserve chairman Bernanke is history in a Romney administration.

As a sidebar, under a Ron Paul administration, there would be no Federal Reserve at all, as we know it. Professional observers of the market often note the irrational power Bernanke's remarks, or letters, have on the market performance.

Last Friday, the market was in a decline.  However, when a letter leaked to the WSJ that indicated the Fed may take some action to help the economy, the market rebounded with fervor. The letter was sent from Bernanke to a California congressperson. If the Fed can do something, and has "indisputable power," to help the economy, then by all means, they should do it. Why wait? Why tease everyone with a leaking letter?

If Bernanke has the genuine power to give the economy a legitimate boost, then he should be strangled for not taking that action quickly. On the other hand, if the Fed actions are really just smoking mirrors, representing mere short term press releases designed to accelerate conspicuous-consumption by naive consumers, then maybe Ron Paul is right. By the way, the Fed action, that Bernanke uses to tease everyone, is selling bonds. This action allegedly drives interest rates down and puts cash into the economy somewhere. However, I know this Fed action puts no cash in my pocket and the reduced interest rates do not reach me, or any other credit card user, either.

There is a lot I do not understand about the Fed operations, but my opinion is the real winner on the Bernanke bond strategy is the company that gets the commission for selling or buying the bonds.

Bernanke may be gone next year anyway. Let's speculate on what investment bank he will go to work for.  Do the initials GS mean anything? I will revisit this blog next March.