An Exit Strategy From Bernanke

http://www.prudentbear.com/index.php/thebearslairview?art_id=10704

Mitt Romney has now said he would not reappoint Ben Bernanke as chairman of the Fed. What a relief!  (Or maybe not; I still reckon Obama has a 50-50 chance of winning in November, and he will now presumably get Bernanke’s help, including a dose of QEIII at either the September or October Fed meetings, whenever Bernanke thinks it will do the most “good.”) Still, even if Romney wins and persuades Bernanke (whose term ends in January 2014) to forego a year of lame-duckery, there’s still the question of how we exit from Bernankeism. Four, six or seventeen years of loose money, however you count it, have left a huge number of vulnerabilities in the economy, so exit has the potential to be both painful and destructive.