Update: TOTUS throws Larry Summers unda da bus; will reappoint Ben Bernanke head of Fed manyana…

Update 2: Rally fizzled but we stayed positive, DOW closes up 30+…

Update: TOTUS just made the announcement. Ben thanked his colleagues at the FED and thanked TOTUS for backing a STRONG and INDEPENDENT FED.

BWAAAAHAAAA!!!!! Another TOTUS promise broken, Larry Summers must be eating his liver..you KNOW the ONLY reason he wasn’t named Sec of Trez was because head of the FED was promised to him….

…As the nation’s top financial authority, Geithner will inherit oversight of the Bush administration’s $700 billion bailout for Wall Street and a U.S. economy struggling with recession.

He will be flanked by former Treasury chief Lawrence Summers, who will head Obama’s National Economic Council. Analysts say this appointment puts Summers in line to succeed Ben S. Bernanke as chairman of the U.S. Federal Reserve in 2010….

WSJ –Several options were on the table, including naming Mr. Obama’s top economic adviser, Lawrence Summers, as Fed chief. Mr. Summers, the gruff, brilliant economist, would likely have run up against resistance on Capitol Hill, too.

Privately, many economists including Fed officials worried that Mr. Summers’ sharp-tongued style could undermine the collegial halls of the Fed…

IMO TOTUS was informed that in light of the new deficit projections to be released tomorrow, the ONLY way China would feel comfortable continuing to purchase our ENDLESS debt issuance was under Bernanke going forward. Ben being seen as a non-political appointment, having gained his position under GWB, and having earned his chops these past 9 months…

Oct 2008 Economic Club: Tim and Ben (Reuters Photo / Lucas Jackson) Tim demonstrates Paper Beats Rock economic plan..

And that is because Bernanke WILL IMO take the steps necessary to tighten when recovery is imminent, thus avoiding the HYPERinflationary Carteresque scenario…

Thanks China! Are you having fava beans and a nice Chianti with that liver Larry?

Larry Summers was SHOCKED to learn of Bernanke's reappointment, as he had slept through the team meeting...

We should have a killer rally tomorrow! I may have to get out my DOW 10,000 hat if Gentle Ben will be in that chair for another term…it was the idea of Summers calling the shots at the Fed when we needed to tighten that really freaked me out….still a double dip IMO but one we can correct with Ben at the helm…

WSJ:

President Barack Obama will announce Tuesday that he is nominating Ben Bernanke for a second four-year term as chairman of the Federal Reserve, White House Chief of Staff Rahm Emanuel said.

Mr. Emanuel said Mr. Obama will make the announcement from Martha’s Vineyard Tuesday. He said the president credits Mr. Bernanke for “pulling the economy back from the brink of depression.”…

The amazing Snowball (TM) courtesy of BirdLoversOnly rescue organization

Obama Economic Team 'Vogues' last November