TUESDAY AUGUST 25, 2009

Bernanke Returns

President Obama has announced that he will nominate Federal Reserve Chairman, Dr. Ben Bernanke, for a second term. This is a bit of a surprise, mainly because it comes much earlier than expected. There was some talk that Larry Summers, a key economic advisor, wanted the job. In addition, many criticized Dr. Bernanke for his handling of the crisis environment last fall. In particular, many did not like the heavy hand he used with the BOA/ Merrill Lynch deal. Many claim his policies have been to accommodative.


It is always easy to play Monday morning quarterback. Where mistakes made? Absolutely. And many of the criticisms have merit. However, in the calm of today, we can not forget how horrible the economic environment was last fall and winter. It was the worst I have ever experienced. The end result is clear. Markets around the world were on the brink of collapse. Today, while the economy is still weak, we have stepped away from the disaster scenario. And much of the credit goes to Dr. Bernanke. I believe President Obama is smart to nominate him for a second term.

POSTED AT 1899-12-30 08:49:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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The opinions expressed here do not represent the views of Alliance Financial Corporation and Alliance Bank, N.A. This communication is not an offer or solicitation for the purchase or sale of any security, is for general informational purposes only and does not provide personalized investment advice. When making personal investment decisions you should consult your investment adviser or rely on your own research. Copyright 2008.