With money successfully printed and bailouts in place, central bankers are currently deciding whether or not to play Russian roulette with their respective economies and, very likely, their jobs and proceed ahead with politically friendly but economically destructive regulatory legislation. The Beard may have received many enthusiastic thumbs up from fellow economists for his work so far, but with Laconic Larry waiting in the wings, he still seems a bit hesitant to go all-in on seeing whether or not the economy can survive the regulatory vice right now.
Federal Reserve Chairman Ben S. Bernanke used a weekend Fed symposium to single out the creation of rules limiting risk as one of the "difficult challenges" ahead.
But the Beard should take some solace. The head of the household at 1600 Pennsylvania Ave. will have the mother of all challenges if he has to explain people why his guy went ahead with selected well thought out proposals and proves Dr. Doom's double-dip recession call as being spot on.
Central Bankers Warn Recovery Shouldn't Delay Tougher Oversight [Bloomberg]