In Bernanke we trust!?

By Peter Boockvar - January 25th, 2010, 7:58AM

In Bernanke we trust!? The nominal crowd says Yea as the S&P futures are of course rallying pre market but the REAL (after inflation) money crowd says Nea as gold is up by about the same amount. I understand the markets desire to have Bernanke reappointed, which seems will be the case this week, from a continuity standpoint but until the dual mandate focus of the Fed is altered, whoever replaces him would highly likely not have much of a different approach. Asian stocks continued their Chinese cool down pullback led by Bank of China which said they will raise capital to fill a balance sheet hole. Just as the rest of the world is thinking about reversing the steroid shot of stimulus, the Bank of Japan said they will step up QE should their economy slip again. Greece will try to sell 5 yr notes this week and their bonds and stocks are bouncing. Existing Home Sales are key today.

PERMALINK
Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “In Bernanke we trust!?”

FrancoisT Says:
January 25th, 2010 at 8:35 am
Steve Keen makes a cogent and (IMO) devastating case against BB:

http://www.nakedcapitalism.com/2010/01/steve-keen-the-economic-case-against-bernanke.html
franklin411 Says:
January 25th, 2010 at 10:28 am
So how should the Fed’s dual mandate be changed? By focusing on one or the other rather than both?
alfred e Says:
January 25th, 2010 at 11:34 am
Wish I had been a student of history.

Keen eviscerates Bernanke. Quite precisely.

Irving Fisher ignored.

But hey, the elites are happy.

When the elites are happy Bernanke prospers.

When Main Street suffers, it’s up to them.

The outcome of events this year?

We are on the knife’s edge.

Somebody important better wake up and realize rhetoric and BS ain’t gonna get it done.