Weak

	Fed Chairman Ben Bernancke said, "These are unwelcome developments." Well, Ben, so is the flu and so were the 9/11 attacks. Either keep quiet or make infrequent, substantive brief statements based upon economic theories, data, and consistent interpretations. The Fed, the nation, and the world are in dire need of leadership. More quavering is detrimental and superfluous.
The former and too-long-serving Fed chairman Alan Greenspan played a silly cryptic phrase game with Congress, politicians, and analysts. He survived because it was a game and in our age of juvenile behavior, everyone acknowledged and accepted his nonsense as a Greenspan feature. His missteps were repealed by his follow up cryptic phrases. Most everyone was too stupid to interpret him intellectually, incapable of understanding him or realities, and too scared to rock the boat. Economic forces eventually corrected, ameliorated mistakes, and economies prospered. Simply believing that a leader was in place at the Fed provided adequate cover. Getting the majority to believe perceptions is what economic stability -- and therefore economic growth -- is all about.
The new Fed chairman stated in one lecture that the economy may be slowing and inflation may be a threat implicitly to be contained through further interest rate increases. That style of ambiguity from the new, and therefore ungrounded, Fed chairman sends fears through markets.

Ambiguous positions are often accepted when couched in cryptic phrasings from a known and accepted Fed chairman.

However, ambiguous positions enunciated by a new Fed chairman distort consumer spending, shuffle interest rates, and confuse stock and commodity markets.

Bernancke must lead. Providing leadership these days is very difficult. It is not that it is difficult for a good leader to do his job. However, these days, potential good leaders are too wise to step forward to lead. Most qualified people see that the media will distort job performance and there are too many ordinary people who know beyond all else that they know everything about everything. Today's spectators consider themselves experts. They know the only reason they are not leading is that they are already busy doing their own jobs. It's pathetic that they do not know enough to see that they do not know enough to do their own jobs.

Bernancke did step forth to lead the Federal Reserve. Will he have the fortitude to lead?

One of the less eloquent threats to Bernancke's leadership and ability to impact the global economy comes from CNBC's Maria Bartiromo. He naively gave her an off-the-record interview at a journalism dinner one Saturday evening. She, in her usual low class manner, used his off the cuff remarks on air the next business day. Her harsh report roiled markets. Bernancke appeared weak.

Then followed the usual media over-reaction and excessive coverage of Bartiromo's report -- not because of the Fed Chairman's comments -- but because one of the media's more prominent and strident reporters made a misstep. Maria covered her abuse of Bernancke's trust by saying afterwards, "It's not brain surgery"... I just report.

Watch for Bartiromo to use her CNBC podium to wage war against the new Fed Chairman. She lost stride due to her own reporting. As we see often these days, people take revenge rather than learn from their missteps.

If Bernancke shows weakness, watch for attack after attack, media pile-on, and the Fed will need a new so-called leader.

The United States' Federal Reserve Chairman position is critical for the US and global economies. It is pathetic for everyone that his weakness may negatively impact the global economy -- and add to the internal divisive and contentious American landscape.

And, Ben, stop posing like a teenage girl biting her finger nails.