Fed Chairman Carousel

Bill Tatro
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Posted: Jun 22, 2013 12:01 AM

Since the inception of the NFL in 1920, it would appear that unsuccessful head coaches actually have no worries of any kind.  With the coaching club acting like a fraternity — similar to the ownership of all NFL organizations — ineffective head coaches have been routinely shifted to other teams.  However, you would think that an unproductive head coach would be demoted to some lowly position comparable to a back office refreshment coordinator.  Yet, that would be incorrect.  In fact, you can rest assured that a useless head coach will be given another head coaching position with another team, and most likely with an increased salary.  The justification of this process is quite baffling.  Despite the fact that it’s extremely difficult to land an NFL head coaching job, perhaps the losing head coach that’s been given a fresh start with another team possesses a very unique talent that just wasn’t recognized by the previous organization.  Of course the new head coach would be expected to shine immediately with his newfound team.  Nevertheless, just as the old expression goes, “all good things must come to an end.”  While this head coaching carousel might have persisted for the same football coach as he was employed in the so-called best interest of two or three teams, team owners have ultimately realized that a losing philosophy and a hopeless strategy is still very much a losing philosophy and a hopeless strategy, no matter the team for which it was implemented.  Subsequently, there are many former NFL head coaches that can now be found on game day in the upper tiers of football stadiums attempting to call plays or struggling to formulate defenses — it seems they just don’t go away quietly. 

The same can be said regarding the soon-to-be-available job of Federal Reserve chairman.  Short of completely dissolving the system that was ultimately created following the 1910 Jekyll Island financial meetings, we’ll all be subjected to another round of Keynesian melodrama.  Names such as Christina Romer and Larry Summers are being casually thrown around, after all, why not?  Christine and Larry were there in the early days, touting big spending for increased jobs.  Unfortunately, it didn’t quite work out that way, but oh well; both of them are probably getting a little tired of academia.  Alan Blinder, Donald Kohn, and Janet Yellen (and some say Janet has the inside track) are all Federal Reserve veterans whose best days are definitely behind them.  And then there’s little Timmy Geithner.  Don’t you really miss the daily dose of Geithner gaffes?  I certainly do.  Yet, when all is said and done, Obama will probably break rank and not perform the NFL reshuffle.  Predictably, he will name Roger Ferguson as Fed Chairman.  In fact, Ferguson, who on paper appears to be admirably qualified, might be chosen merely because of his alleged close friendship with the president.      

Regrettably, all seven Fed chairman candidates have the same Keynesian philosophy which will undoubtedly prove that no matter if it’s the NFL or the Federal Reserve, a losing philosophy and a hopeless strategy is still very much a losing philosophy and a hopeless strategy.