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Diamond and Kroszner

According to the New York Times, Republicans are blocking Nobel Prize-winning economist Peter Diamond's nomination to the Federal Reserve Board "in retaliation for a refusal by Democrats to give a full 14-year term to Randall S. Kroszner, who served on the Fed board from 2006 to 2009." Tyler Cowen would like to see this mentioned more often.

MarketWatch says "Kroszner was the Fed's point-man on consumer lending and mortgage matters, a position that led to conflict with Dodd." Moreover, Kroszner's term would've been for 14 years, and Dodd argued that a decision of that length should go to the president about to enter office, not the unpopular leader about to leave it. But the bottom line seems to be this: The Democrats, who held the majority at that point, did not want to confirm Kroszner. George W. Bush did not, to my knowledge, offer up a second candidate.

Of course, Republicans can't say they're obstructing Diamond -- remember, they're in the minority here -- because they're still annoyed over Kroszner. So instead, we're getting this ridiculous dance in which Sen. Richard Shelby (R-Ala.) questions the qualifications of a Nobel Prize-winning economist. And Democrats will of course extract payback next time they're in the minority and the Republicans want to move some Fed nominees.

There's no good argument here for further delaying Peter Diamond's nomination. There's a very good argument, however, for either running fewer nominations through the Senate, or radically revamping the process by which the Senate considers -- or doesn't consider -- nominations.

By Ezra Klein  | October 12, 2010; 1:04 PM ET
Categories:  Federal Reserve  
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Comments

Why question the qualifications of Nobel Prize-winning economists such as Hayek and Friedman?

The fact that someone has been awarded a cash prize is more an evaluation of the selection committee than it is of the recipient. For example, the name of Fritz Haber is seldom hailed, even though he won the Nobel Prize in Chemistry (1918). By inventing a means of creating ammonia (a fertilizer), Haber revolutionized agriculture and saved hundreds of millions from starvation. Later, Haber gleefully developed chlorine gasses for use in WW I and Zyklon-B for use in chambers implementing the German health care reform of the 1930's.

I'd hope that Peter Diamond ultimately becomes a Hayek or a Friedman... and not a Haber. Until prognostication is perfected, though, it seems wise to question and to re-question his qualifications.

Posted by: rmgregory | October 12, 2010 2:36 PM | Report abuse

Gamesmith94134: What Today's Nobel Says About the US Unemployment Crisis

I am not a pessimist on our economy, and I try not to put these economists down in the resolution to the unemployment. I am just thinking they did not focus on the cause of the anemic or stagnant unemployment to the European or American. It was not the mismatch on resume or non-availability on job opening.
First, it is their attitude that they just all tired or snare at the position that either do not look like their last resolute on surviving or fitting. Since there is always a dim light at end of the tunnel, if their rebellion can make their government turn their heads.
Secondly, many governments calculate the damage control and use teases on the counterpart; instead of facing the problems individually; and neither the public nor the business trust their government after each solution has been proven as the never-ending tests on the fight of a canary in the tunnel of hell and each failed.
Thirdly, the government’s attempt to use the carrots to lurk companies to expand with less so called incentives as they desire; and after many calls on the temporarily act contradict the result as expected like TARP, HAMP, QE, liquidity trap, foreclosure and so on. Their concerns on the double-dip recession or change on another policy could drag them into turmoil. Just hold on to the bag before stag-inflation returns or victimized by the tax scheme; run if you have to if you are on the shaky ground especially your company is filled with or for contracts with your government or others. Self-insurance was never being excessive to corporate culture or CEOs.
In summing up the above, uncertainty both saturated in the minds on the governments, business and the citizens; it is just like Chilean miners trapped in depth with less on escape. This was the roller coaster they rode on that returning to the same spot where it began. Perhaps, the basics on the question really fall on “Are we at the bottom of it yet?”, “Has the trade war started?” or “Is the Dollar really devalued or Euro and Yen regain strength after modification on deficit?” Each are looking at above and sides and their knee-jerking experience gave out the ground they stand on; suspense to amaze in the grips on unemployment or development, each are waiting on other’s move and all are idle. Am I the next canary that flies?
After the G-20, meeting, they came, they saw and they are gone. It is disappointing they could not find a common ground that we are hitting the bottom now that no one is certain whether inflation and deflation would hit at destiny or they will co-exist at the same time and you must guess. So, are you going to stick your head out to smell the gas? Did the Nobel Prize economist smell the gas yet?
I just hope they would return and confirm.

May the Buddha bless you?

Posted by: 94134gamesmith | October 12, 2010 2:39 PM | Report abuse

"There's no good argument here for further delaying Peter Diamond's nomination. There's a very good argument, however, for either running fewer nominations through the Senate, or radically revamping the process by which the Senate considers -- or doesn't consider -- nominations."


Barack obama did not think so about John Bolton or Samuel Alito.

Posted by: krazen1211 | October 12, 2010 3:42 PM | Report abuse

US President Barack Obama used the occasion of the awarding of Nobel Prize to Peter Diamond (his nominee for the board of Federal Reserve) as an opportunity to put pressure on Senate Republications, who had held up the nomination. This is an excellant example ofc what the Republican party of "NO" is all about. There is extreme prejudice and bias against President Obama since he won the presidency. Most of his nominations for posts within the administration are held up or opposed with no valid reason. The leaders of the right are: Karl Rove, John Boehner, Mitch McConnell, Jim DeMint, Dick Armey, Glenn Beck and Sarah Palin. These people are the core of the party of "NO"; or the "Elite" of "The Elite"! There is no written manifesto or governing council but this group of people are maneuvering around the country setting up sham nonprofit 501(c)4 organizations as fronts for political purposes to vote out of office targeted mambers nationwide.(see: Time magazine Sept. 27, 2010) They use thinly veiled ads targeting and promoting their own agenda. These sham nonprofit 501(c)4 organizations are able to raise funds without any transparancies or disclosures. The Republican party of "NO" is going to buy their way into Congressional control.
Vote
Out
The
(E)Incumbent party of "NO"

Posted by: radsenior | October 12, 2010 4:07 PM | Report abuse

Carl Rove founded and form a nonprofit 501(c)4 organizations as fronts for political purpose named American Crossroads. This nonprofit 501(c)4 organization, using the Federal Tax Code as a shield to keep private and shield annoymous doners. The Supreme Court, with their decision earlier this year, has allowed Corporations to make unlimited donations to these nonprofit 501(c)4 organizations. That shows absolutely no transparency on the part of the Republican operatives: Karl Rove, John Boehner, Mitch McConnell, Rupert Murdoch, Jim DeMint, Dick Armey, Glenn Beck and Sarah Palin. These sham nonprofit 501(c)4 organizations are able to raise funds without any transparancies or disclosures. The Republican party of "NO" is going to buy their way into Congressional control. This organization was crated to elect Republicans and defeat Democrats.

Vote
Out
The
(E)Incumbent party of "NO"

Posted by: radsenior | October 12, 2010 4:09 PM | Report abuse

Why can't our U.S. Senators -- of both parties -- start acting like adults? This retaliation business serves no purpose. One of these days one of the parties will say, "no more" and put an end to these obstructive and destructive practices. Sadly, the RepublicanTea Party has achieved new heights -- or really lows -- with its efforts to "make Obama fail" (their own words in late 2008). Despite their efforts, the President has achieved some important legislative victories and restored professionalism to the Executive Branch and the Cabinet departments.

Posted by: dl49 | October 12, 2010 4:18 PM | Report abuse

Why can't our U.S. Senators -- of both parties -- start acting like adults? This retaliation business serves no purpose. One of these days one of the parties will say, "no more" and put an end to these obstructive and destructive practices. Sadly, the RepublicanTea Party has achieved new heights -- or really lows -- with its efforts to "make Obama fail" (their own words in late 2008). Despite their efforts, the President has achieved some important legislative victories and restored professionalism to the Executive Branch and the Cabinet departments.

Posted by: dl49 | October 12, 2010 4:25 PM | Report abuse

Could very well be that there is no more credibility with the Nobel Prize. Just look who has received it recently: Carter, Gore, and Obama!! By the way, WHAT DID OBAMA DO TO DESERVE IT??

Think the Party of No was very wise!

Posted by: wheeljc | October 12, 2010 4:38 PM | Report abuse

You forgot to mention that the nomination hasn't actually been brought up for a vote! There is no Republican with that authority. heh

Posted by: aserwin | October 12, 2010 4:40 PM | Report abuse

I seems to me that such a serious "deliberative" body as the US Senate should be approving all nominations including those for dog catcher.

I am astonished at the arrogance of Americans that they feel from the perspective of American exceptionalism that their form of government/democracy is the best in the world. It's current governance structure, political values etc are a text book example of how not to run a country well at least nothing bigger than Iceland

Posted by: Jorg2 | October 12, 2010 4:43 PM | Report abuse

Not revenge? You kid, of course. If it is not revenge, it is just a case of being obstinate or stupid, or both in the case of Shelby. He says no one should go into a job as a trainee, when the job is important. They why did he get to become a Senator, when he clearly didn't understand the job?

Posted by: ronjeske | October 12, 2010 4:45 PM | Report abuse

"Barack obama did not think so about John Bolton or Samuel Alito."

First, it's an insane comparison. We're talking about the confirmation of an economist versus a Supreme Court Justice and a US representative to the United Nations, both of whom had very specific and known agendas. I'm so sick of the standard, tired arguments coming from the right, which mostly come down to, "he did it, too, they started it". Not only are they unproductive, they fail to address specific circumstances. Sheer obstructionism is unpatriotic and the GOP has been wildly irresponsible in that regard.

As it happens, Obama and yes, please afford him a capitol letter, as is standard, was right on both Alito and Bolton. Alito has proven himself to be a small minded, ideologue with anger issues and Bolton distinguished himself by alienating everyone he came in contact with at the UN, including our allies. The Bush Administration specialized putting foxes in the henhouses and then crying fowl when there was no chicken on the menu at dinner time.

Posted by: Koko3 | October 12, 2010 4:48 PM | Report abuse

Let's name some other Nobel Prize winners. How about Jimmy Carter and Al Gore! That's enought right there to shoot holes in any comments supporting this nomination.

Posted by: RAMDADLLC | October 12, 2010 4:53 PM | Report abuse

Another example of the GOP's anti-intellectualism. The Dan Quale syndrome forever embedded in their small minds. It's to be pitied!

Posted by: JONWINDY | October 12, 2010 4:54 PM | Report abuse

Considering that Paul Krugman is a Nobel Prize winner for economics, and apparently doesn't understand Adam Smith, beating the Nobel Prize as a qualification is a pretty idiotic thing to do. Dodd's statement then was incredibly innappropriate. While traditionally a president int he last two years of his administration is generally looked at by the opposition party as a Lame Duck, the fact remains that they are the President and entitled to appoint whomever they want, regardless of popularity.

What has always offended me about the Democrats in Washington is their belief that someone they get to decide the rules. Barack Obama's presidency started in January of 2009, not November of 2008. We saw the same thing when the Clinton's came in back in 1993. It is arrogant and elitist. Perhaps that explains Mr. Dodd's thinkign that taking those VIP loans was appropriate.

Considering the disastrous applications of "perfect world" economics over Chicago Monetarism by the Administration and their Nobel Prize winning advisors, Winning the Nobel simple means we can't assume that Mr. Diamond knows anything relevant. Frankly the last thing we need is a Dodd or Frank supported Nobel Prize Winner running the Federal Reserve.Good lord, the Secretary of the Treasure was on the Board and thought his income tax was optional.

Posted by: BrendanJParedes | October 12, 2010 4:54 PM | Report abuse

Another example of the GOP's anti-intellectualism. The Dan Quale syndrome forever embedded in their small minds. It's to be pitied!

Posted by: JONWINDY | October 12, 2010 4:55 PM | Report abuse

Judging from someone else who has won the prize, I am not impressed with the choice, or the distinction

Posted by: douttfire | October 12, 2010 5:21 PM | Report abuse

There was nothing wrong with Haber's qualifications as a chemist, rmgregory; his ethics were deficient, a lacuna unlikely to be revealed by questioning his professional qualifications.

Posted by: Iconoblaster | October 12, 2010 5:23 PM | Report abuse

"As it happens, Obama and yes, please afford him a capitol letter, as is standard, was right on both Alito and Bolton. Alito has proven himself to be a small minded, ideologue with anger issues and Bolton distinguished himself by alienating everyone he came in contact with at the UN, including our allies. The Bush Administration specialized putting foxes in the henhouses and then crying fowl when there was no chicken on the menu at dinner time. "

That's your irrelevant opinion. Both candidates had the support of both a majority of the Senate and a majority of the public.

Bush's Supreme Court nominees were more popular than Obama's at the time of their nomination.

Posted by: krazen1211 | October 12, 2010 5:24 PM | Report abuse

I commend Senator Shelby for his principled stand against confirming Nobel Laureate Diamond as a member of the Federal Reserve Board. Diamond clearly lacks two characteristics that Shelby and his right wing supporters consider to be essential: 1) he is not a partisan Republican; and 2) he has an IQ over 80. When Sharron Angle or Christine O'Donnell lose, they would of course be far more qualified for the Fed Board, for they both meet the two essential requirements.

Posted by: marcb1 | October 12, 2010 5:24 PM | Report abuse

While it's entirely possible to be unqualified despite being a Nobel laureate, that doesn't seem to be what's going on here now, does it? Sooner or later adulthood will prevail and someone will stop saying "when we did it, it was OK because our objections were legitimate" and we'll fix the process or just stop acting like kids.

Posted by: JoeT1 | October 12, 2010 5:24 PM | Report abuse

"While it's entirely possible to be unqualified despite being a Nobel laureate, that doesn't seem to be what's going on here now, does it? Sooner or later adulthood will prevail and someone will stop saying "when we did it, it was OK because our objections were legitimate" and we'll fix the process or just stop acting like kids."

It won't be sooner because of Chris dodd and Barck obama.

Posted by: krazen1211 | October 12, 2010 5:39 PM | Report abuse

Probably the same experience in Banking as Al Franken has in government.

Great old definition of an economist was "guy with a Phi eta Kappa key on his watch chain but no watch".

In noting Jimmy Carter and Al Gore, why leave out Obama?

Posted by: jackbrumbelow7 | October 12, 2010 5:45 PM | Report abuse

This is more proof that Republicans only care about Republicans and NOT the USA

Posted by: imaldridge | October 12, 2010 5:49 PM | Report abuse

Least we forget, Obama also has a Nobel Prize that he didn't earned and didn't deserve. Which proves the point, that just because someone has a Nobel Prize doesn't make them right or give them special insight. It just means that they have a Nobel prize.

Posted by: WriterDude | October 12, 2010 5:53 PM | Report abuse

does anyone else wonder why ANY government job like this would lock in a 14 year term?

Sounds like a recipe for disasters like we saw on Wall Street in 2008.

Posted by: JEP07 | October 12, 2010 5:59 PM | Report abuse

What do Republicans have in common with the Chinese Communists? They have apoplexy fits when the Nobel prizes are awarded to their respective citizens. It is astonishing when the American right and the Chinese Communists can agree on something. Amazing how the negative comments here about Obama and Diamond winning the Nobel are so much like what we are hearing from the Chinese Government the past few days about Lu Xiaobo.

Posted by: vicetan | October 12, 2010 6:03 PM | Report abuse

as usual the republicans are right in their methods and viewpoints. Better that the new Senate in Jan re looks at this nomination

Posted by: mandinka2 | October 12, 2010 6:19 PM | Report abuse

I have known children who play these kind of games, BUT they're children. We elect these grown up children so it's time to give them a time out - forever!

Posted by: mcdonalsherry | October 12, 2010 6:29 PM | Report abuse

Hey Ezra, did you come up with this angle of attack all on your own or did you hatch it with the rest of you Journolisto's?

Nobel Peace prizes mean far less after Al Gore, Jimmy Carter, and B. Hussein Obama won one. As mentioned in a previous comment, Hayek and Friedman were Nobel Prize winners too but you leftists refer to them as medicine men shilling snake oil. Let's also not forget that Paul Krugman also got a Nobel Prize. If you want to see a bigger shill to the DNC than yourself, check out Krugman. For at least the past decade, the Nobel Peace Prize just means that you didn't vote for George W. Bush.

Let's also not forget that Democrats held up every single appointment that they could when they were the minority party and the left's cheerleaders in the press (that would mean you) praised them all the way for playing their crucial role in applying some checks to balance the Republican's power. However, the difference here is that the American people don't want anyone recommended by this White House or Congress.

You might want to get back with your other collaborators and come up with a little stronger argument. It's pretty obvious why media liberals had to create a blog to share the same brain. Too bad they aren't even sharing a good one.

Posted by: RDH0145 | October 12, 2010 7:26 PM | Report abuse

It should be called the Nobel Left-Wing Prize.

People forget that the Nobel Peace Prize is awarded by a group of five Norwegian politicians (members of Parliament). Currently it has four left-wing politicos and only one conservative party member.

Is there any wonder that, in a leftist nation like Norway, the Nobel selection committee would always be left-leaning?

So, let's don't get too excited if someone gets a Nobel prize. It's really meaningless lefties giving other lefties a nod.

That's the reason Obama got his outright gift and Gore and Carter were able to win. But no conservatives.

Sound objective to you? If so, you're probably a left-wing hack too.

Posted by: RonKH | October 12, 2010 7:56 PM | Report abuse

Quit your whining....he's just being "borked." Obama had no problem blocking Bush nominees. Now it's his turn to be hoisted by his own petard. Sweet!

As for the idle threat of blocking the nominees of the next GOP administration...don't throw us in that briar patch. In case that administration loses its way and doesn't do the job voluntarily, you'll be helping us dismantle this bloated government.

Posted by: CincinnatiRIck | October 12, 2010 8:06 PM | Report abuse

the party of No and Nero blocks government action again.

Posted by: imaldridge | October 12, 2010 8:11 PM | Report abuse

Ezra, why don't you post all the articles Diamond has published on monetary theory and policy? Here is my list: 0

Posted by: hartwr1 | October 12, 2010 9:03 PM | Report abuse

Ezra, why don't you post all the articles Diamond has published on monetary theory and policy? Here is my list: 0

Posted by: hartwr1 | October 12, 2010 9:04 PM | Report abuse

The Republicans do not frighten me, they make me ashamed.

They blocked because of their cruelty and wrecklessness. They've done enough. They have blocked this because they have no sense of decency.

At long last, they have left no sense of decency.

They have seen fit to bring this out. It will do neither the Republicans, nor their cause any good.

Posted by: RememberDec2008 | October 12, 2010 9:59 PM | Report abuse

(...and yes, that was derivative of Mr. Welch's response to Joseph McCarthy. Why? Because the Republicans today are behaving like Joseph McCarthy. No sense of decency.)

Posted by: RememberDec2008 | October 12, 2010 10:02 PM | Report abuse

And some wonder why government does not work?

Posted by: edmundsingleton1 | October 13, 2010 3:27 AM | Report abuse

(...and yes, that was derivative of Mr. Welch's response to Joseph McCarthy. Why? Because the Republicans today are behaving like Joseph McCarthy. No sense of decency.) Posted by: RememberDec2008
--------------
As Bob Schieffer aptly pointed out to David Axelrod, it is this White House that has no sense of decency: "Is that all you've got?" Even honest liberals realize now that the Cook County Sewer has backed up into the White House.

One can't be ashamed of something for which they bear no responsibility. If you feel compelled to feel ashamed, start with the Obama Administration...at least you appear, if you voted for him, to bear some small portion of the responsibility for the nastiest bunch of knee-capping thugs since the Nixon administration.

Posted by: CincinnatiRIck | October 13, 2010 6:56 AM | Report abuse

I realize that noting that there is a difference between the 3 Nobel Peace prizes and a Nobel Prize in Economics may be beyond the intellect of some of the Republican posters here.

And, I understand that the Republican Senators would rather have their little rants and obstruct the business of the people of America. But, what else is new about these folks wrapping themselves in the flag,apple pie and motherhood while selling the country out to China and India?

An up or down vote on the gentleman's credentials would be the proper response. Putting America before the Republican Party, what a concept?

But when you have to turn a rock over to find Mr. Shelby and the rest of this un-American group, what else is new?

Posted by: JohninConnecticut | October 13, 2010 7:00 AM | Report abuse

Are we really talking about mature, logical
and functional adults? I question that...

I can go to the local elementary school playground and see this too. "Neiner, neiner, neiner... If I can't have it, then you can't either!!!"

My recommendation is that we vote out all of the Republicans & Conservative Democrats. Maybe then, we can get something done that truly benefits the average citizen!

Believe it or not, folks...There's a lot more of us than there are of them & the people they're taking care of. Until we stop letting the Karl Roves, Mike Savages,
Ann Coulters, Rush Limbaughs, Glenn Becks, Et Al, tell us how to think; then we will never be united enough to stand our ground
to protect OUR interests! Heaven knows that the "loyal" opposition sure knows how to help themselves to the fruits of our labors!!!

In other words...Let's heed the words on the bumper sticker on the Master Gunny's SUV at MCAS Miramar...

"Patriotism doesn't mean that we must continue to support bad decisions!"

If that Marine woke up & smelled the coffee, so can we!

PS: A vote for a "Tea Party" candidate is, despite the rhetoric, just another vote for the current status quo as sponsored by the Republicans & Conservative Democrats!

PPS: A lot of people want to blame Obama for the current mess. If you're one of them, consider this...When George Bush, Jr. left office as the Governor of Texas, he left that state with the highest budget deficit in that state's history. When George left office as President of the United States, he left this nation with the highest deficit in its history. I guess that just goes to prove that a leopard can't change its spots! Want to blame the Democrats in Congress? Consider this also...The Republicans dominated Congress for most of George's term in office! As the song in "The Matrix" soundtrack puts it so well...

"W A K E U P... W A K E U P...

W A K E U P!!!"

Posted by: theseeker1952 | October 13, 2010 12:16 PM | Report abuse

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