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Don't get fooled by Bernanke PDF Print E-mail
Written by Steve Meyers   
Tuesday, 31 August 2010 11:19

By Brett Arends

BOSTON (MarketWatch) -- When are investors going to stop getting suckered by Ben Bernanke?

The Dow Jones Industrial Average (DJIA 10,051, +40.86, +0.41%) jumped nearly 200 points Friday after the Federal Reserve chairman's pep talk on the economy. Worldwide markets followed suit. And long-term interest rates rose on his sunnier outlook.

Yes, the Fed chairman seemed to rule out a double dip. And yes, he said he stands ready to pump more money into the system if it should falter.

But so what?

Federal Reserve Chairman Ben Bernanke (R) speaks with Federal Reserve Vice Chairman Donald Kohn. Reuters

Federal Reserve Chairman Ben Bernanke (R) speaks with Federal Reserve Vice Chairman Donald Kohn.

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On forecasts, the Fed chairman is about as useful as a New England weatherman.

As for the talk of more quantitative easing: A close reading of Bernanke's word's make you wonder if he even understands the crisis at all.

Let's look at the forecasts first. "I expect the economy to continue to expand in the second half of this year, albeit at a relatively modest pace," Bernanke said at Jackson Hole.

 

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Mars  - Accidental drowning! |2010-08-31 11:28:53
This caught my eye because it's just another in the continuing string of "accidental drownings":

DEBKAfile Exclusive Report August 30
Gen. Yuri Ivanov, 52, deputy head of GRU, the Russian military's overseas intelligence arm of Russian military, was found dead in mysterious circumstances described in a terse official Russian eulogy on Aug. 30 as a tragic swimming accident "several days ago." No further details were provided such as where he died.
http://www.debka.com/article/8999/
Ron Rebner |2010-08-31 12:16:49
Steve. I want to add to my gold and silver. I am waiting for the equity markets to decline as I think the metals will decline a bit based on margin calls and "sell what you have". Does this strategy still make sense to you? Thanks.
SteveM |2010-08-31 12:51:36
The metals markets have been quite strong and resilient. IF we see a major wreck, then yes I could see a decline. It's hard to tell if we are just pricing in endless printing and bailouts.
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Last Updated on Tuesday, 31 August 2010 12:36
 

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