As we know that U.S is in the Decade’s worst financial and economical crunch and Obama is giving his 100 % to resolve all these issues. Mr. Obama is trying to shape Fed policy. He has already appointed one Fed governor, Daniel Tarullo, and has an opportunity to fill two more vacancies in the months ahead. The reappointment of Ben Bernanke is a very good decision made by the President Obama. Mr. Bernanke’s to-do list is developing rules to close big, failing financial institutions like Bear Stearns Cos. and Lehman Brothers Holdings Inc. outside of bankruptcy court. It has been nearly 18 months since the failure of Bear Stearns, and Congress hasn’t passed legislation giving the Fed and Treasury the authority they are seeking to deal with institutions other than banks that they deem too big to fail. Bernanke is doing a fantastic job so, In the two years since the onset of the global financial crisis, Mr. Bernanke’s Fed has cut short-term interest rates nearly to zero, has initiated a slew of ways to bypass banks to keep credit flowing in the economy, and is on course to purchase up to $1.25 trillion in mortgage-backed securities and $300 billion in long-term U.S. Treasury.

Mr. Geithner gave a proposal to Mr. Bernanke and he has opposed to strip the Fed of its power to oversee consumer-finance protections. Lawmakers, including Senate Banking Chairman Christopher Dodd of Connecticut, are wary of giving the Fed more power to oversee large financial institutions after some big banks, like Citigroup Inc., teetered under its oversight. Earlier this month, Mr. Geithner lashed out at other financial regulators in a private meeting for not taking a unified stance with the Treasury on overhauls. So, Ben Bernanke’s to do list is long where he has to settle down the Mortgage crisis, renomination elation, Wall Street crisis, banking sector collapse and countries other problem and we are hoping that he will be successful in the future!

In nominating Bernanke last week, When president Obama nominating the 2^nd time Mr. Ben Bernanke as the Fed chairman he was so confident that he got the right man who can save our country form the financial disaster! President Barack Obama praised the Fed chairman for his “bold action and out-of-the-box thinking,” saying it had helped avoiding a repeat of the Great Depression, because the bold actions of Bernanke, lending hundreds of billions of dollars to banks and businesses, slashing overnight interest rates to nearly zero, having the Fed almost single-handedly finance the mortgage market will have to be reversed or rolled back over the next few years. There is a possibility that if the Fed shifts too quickly from the role of savior to that of strict disciplinarian, it risks aborting the recovery and tipping the nation back into a recession, essentially repeating mistakes made in 1937 when the economy had begun to rebound. If the Fed moves too slowly, it risks the kind of intractable inflation it experienced in the 1970s and fueling another bubble.

For the first time in almost 20 years, the Fed may soon have to make unpopular decisions like the decision to raise the cost of borrowing even when the economy still feels weak. It has already decided it must at some point next year, the Fed may well need to raise interest rates possibly rapidly and sharply, given how far it cut them last year and in the process raising the cost of things like’s credit cards, mortgages and business loans. Now, its Bernanke responsibility that how well he tackles with these problems and provides the nation, best possible and positive results!

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Bernanke is already preparing to play a larger part in oversight, no matter how Congress rewrites the rules. Fed bank examiners are putting more emphasis on comparing the risks inside one large bank with those faced by other big lenders. The Obama and his administration is taking charge, the Obama plan also envisions a permanent role for Bernanke’s broadened use of the Fed as lender of last resort. The Board of Governors used emergency powers to rescue American International Group Inc., as well as markets for commercial paper, housing bonds and asset-backed securities. In the process, the Fed’s balance sheet expanded by $1.2 trillion over the past year.

“His biggest legacy for sure will be having designed and implemented a policy for dealing with an intense financial crisis,” said former Fed governor Laurence Meyer, now vice chairman of St. Louis-based Macroeconomic Advisers LLC. “Here is what is amazing: It was ad hoc, yet it looks very good.”

Bernanke’s first test on inflation will be reversing the $1.2 trillion in additional Fed credit his policies created. The challenge will be to maintain the Fed’s credibility for keeping prices stable, while avoiding a premature increase in interest rates that may snuff out an emerging recovery. The chairman devoted a section of his semiannual testimony before Congress in July to his exit strategy, saying the Fed could neutralize money in the banking system through tools such as interest on reserves, reverse repurchase agreements, or outright sales of securities. As, president Obama is expecting high from the reappointment of the Bernanke. We are hopeful that he is the man who can lift up and save our current economical conditions form the further disaster!

Watch the video “Obama Keeps Bernanke at Fed”

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Mr. Ben Bernanke has been appointed 2^nd time as a Federal Reserve Chairman by the President Obama to resolve the countries financial problems. It was really dismaying to read the stream of vitriol that followed President Obama’s decision to reappoint Ben Bernanke as chairman of the Federal Reserve. History is showing that Bernanke was a true hero whose out-of-the-box thinking saved the global economy from collapse. In an interview Bernanke to task for America’s recent housing and financial bubble trouble, but doesn’t argue against a second term. Now this time is to take some very important and quick decisions which can resolve the U.S “financial bubble trouble”.

We know that, everyone loves a central banker when he’s doing best of flooding the economy with money. But Mr. Bernanke will sooner or later have to say no to the political class. This is something he has never done, and already there are signs in China and the edges of the dollar bloc of new asset bubbles. Mr. Bernanke has also tended to be a domestic central banker, ignoring the Fed’s larger role as steward of the world’s reserve currency.”His money-withdrawal task will only be harder because of the Fed’s extraordinary forays into fiscal policy and credit allocation since the crisis began. The Bernanke Fed has also become nearly an arm of the Treasury by endorsing a spendthrift stimulus and by directly buying federal debt for the first time in a half-century.”

All of these steps helped the country narrowly sidestep a much deeper financial panic than the one we had. Let’s recall that in July, analysts began issuing reports saying that the “recession is over.”I am hoping the best to see my country again on the top and economically strong so, Bernanke might be a right man to resolve the countries “financial bubble” which is very much important!

President Obama on Tuesday will nominate Ben S. Bernanke to a second term as chairman of the Federal Reserve; administration officials said this will be surely a great success of the Ben S. Bernanke. Mr. Bernanke, a Republican who was appointed by President George W. Bush almost four years ago and who had briefly served as chairman of Mr. Bush’s Council of Economic Advisers. Now President Obama is putting again responsibilities on Bernanke’s shoulders to take out country form the economical crunch and he will announce his decision, with Mr. Bernanke at his side, at 9 a.m. “The president thinks that Ben’s done a great job as Fed chairman, that he has helped the economy through one of the worst experiences since the Great Depression and that he has essentially been pulling the economy back from the brink of what would have been the second Great Depression,” the White House chief of staff, Rahm Emanuel, said Monday night.

Mr. Obama will announce his decision, with Mr. Bernanke at his side, at 9 a.m. at an appearance at Oak Bluffs School on Martha’s Vineyard, where the Obama family is vacationing this week. The first challenge that he has to face is the housing sector that has to be improved. Bernanke’s comments and the housing news sent Standard & Poor’s 500-stock index up 1.9 percent to a new high this year. The US and global economy “appear to be leveling out”, Bernanke told an audience of some of the world’s leading economists and central bankers, and “prospects for a return to growth in the near term appear good.” He warned, however, that the recovery is “likely to be relatively slow at first,” with unemployment declining only gradually.  So, these all issues should be sort out in order to improve our countries economical situation!