Bernanke Takes Plea for Political Will Straight to the American Taxpayer

In an interview straight out of President Obama's media playbook, Federal Reserve Chairman Ben Bernanke takes his case straight to the American people on "60 Minutes." A case that is sure to require more of the taxpayer's money to achieve what he claims is a fundamental underpinning to economic recovery--stabilizing the US banking system.

Bernanke, giving a rare broadcast interview as a sitting Federal Reserve Chairman, was unquestionably caring a message. Offering good news,Bernanke said that the government was working hard to lay the foundation of economic recovery--expecting the current recession to end in 2009, with a recovery beginning in 2010.

Despite his assurances of pending recovery "60 Minutes" posed the question of a "new American Depression," to which Bernanke stated he believed "we've averted that risk."

The primary theme of the interview was the importance of stabilizing the US banking system for recovery. However, he also seemed to have an agenda to assure the American taxpayer that this was not a rescue of Wall Street for their benefit, but a necessary step towards recovery.

Defending government actions and inconsistencies on Lehman Brothers and AIG as well as a acknowledging the unfairness of taxpayer dollars propping failing financial institutions, he explained the alternative to not rescuing these institutions--"[we] risk enormous impact, not just to the financial system, but to the whole US economy."

Bernanke punctuated his empathy for Main Street over Wall Street with "60 Minute" footage that followed him to Dillion, South Carolina where he stood near the building where his father owned a pharmacy. There he made this statement to American viewers:

"I care about Wall Street for one reason and one reason only--because what happens on Wall Street matters to Main Street. And if we don't have stabilization in the financial markets, if we don't take the steps necessary to make sure that credit is flowing again, then my father couldn't get a loan to build his new store."

Bernanke's interview on "60 Minutes" seemed to signal more requests to assist ailing financial institutions. Taking his message directly to the American public may be a public relations tactic to avoid expected criticism from lawmakers, like comments from Senator JimBunning (R-KY) earlier this month. Talking to Vice Chairman Donald Kohn at a March 5 hearing, Bunning made his opinion on regulators asking for "more money for more banks and more corporations" they "will get the biggest 'No'."

Comments from the Federal Reserve have already hinted at the need for additions to the $700 billion Troubled Asset Relief Program and Treasury Secretary TimothyGeithner said US banks may need another taxpayer infusion.

This seems to place in context Bernanke's thesis in the "60 Minute" interview--the biggest risk to an economic recovery is a shortage of "political will"--a comment aimed at Congress?