A Tough Time for Bernanke
What a somber person yesterday, and rightly so, it is a long way between essay writing and heading the FED.Â No doubt if he could do it over he would not have taken fed fund rates below 4.0 percent, interest rates were not the problem. We hear Ben has studied every aspect of the 1929 crash and knows what not to do.Â The problem now is, does he know what to do.Â Things have changed, globalization has changed a lot of things, and the US is now in debt to other countries.Â We know why that is and have talked about it repeatedly.Â The market will prevail and answers will come forward.Â
Â Yesterdays senate hearings point to the other shoe, there were three senators who stood out with some understanding of the situation, Bunning, Testor and Hagel who had well thought out questions and comments, the rest should have stayed home, and Chris Dodd should move on to selling mobile homes.
Â We should also add that our indicators that we mentioned Friday still show long-term investors sellingÂ and short-term investors buying the little rallys that the market is producing.Â When that changes we will let you know as that is an important factor along with value to point to putting on your buying shoes.
Â 7:05 AM CDT