Diary

At Least The Fed Is Showing Leadership

$630 billion has been injected into the private capital markets in order to restore any lost liquidity. Of course, this causes issues with the Fed’s balance sheet but it can sell Treasury securities to make up the difference. The stock market will still go down thanks to the failure of Nancy Pelosi and House Democrats in trying to pass a bailout plan but the Fed’s injection of cash–which is nearly as large as the bailout bill’s possible price tag–should keep people calmer than they would have been without the bill.

There is nothing in the rules of the House of Representatives that says that the Speaker of the House has to be a member of the House. After Vice President Hubert Humphrey lost the 1968 Presidential election, a lot of House liberals, upset with the leadership of then-Speaker John McCormack, approached Humphrey and asked him whether he would be willing to serve as Speaker. Art. I, Sec. 2 of the Constitution merely states that “The House of Representatives shall chuse their Speaker and other Officers; and shall have the sole Power of Impeachment.”

I wonder if we can get Ben Bernanke to take up the gavel in the House. Clearly, it is too heavy for Nancy Pelosi to bear it.