The Day Ahead: Bernanke Plays
As I watched Federal Reserve chairman Bernanke make a television appearance Monday, I jotted down a laundry list of notes. They included:The stress of the job appears to finally be finding Bernanke's face. Anyone else think he looked a little tired and thin? Or have I taken my analytical tendencies too far? I sure am glad the CFA textbooks are handy so I can review Okun's Law and the Beveridge Curve. Was the initial reaction in stocks warranted, considering Bernanke continues to reiterate his penchant for low interest rates for a long period? Did this guy just quietly echo Pimco's call for a third round of quantitative easing? Boy, I yearn for the days of Alan Greenspan. Quietness was at a premium then, instead of this excess communication that leaves the door open to wide-ranging interpretations in the marketplace.
The market wanted desperately to snack on a Bernanke peace offering following last week's upsetting of the bullish thesis. However, I am unable to definitively say whether Bernanke brought any new revelations to light. He was fully in character -- might as well have worn one of those cartoon hats with a propeller affixed on the top as he held bags of money in each hand to be dropped onto the roofs of primary dealers....829 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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