Bernanke Gets it Right
In what was probably his best speech ever, Ben laid it on the line yesterday. He is frustrated with fighting the idiotic House Republicans and the greedy bankers. He know that a much more ambitious jobs program was needed in 2009. The one thing that was done right was the automakers action but he knew that he was fighting a secular economic move and the Democrats in Congress didn’t have the kahuna’s to get a massive jobs package done.
In short order he said massive long term budget changes have to be put in place but now is not the time to put in short-term roadblocks to growth through the fiscal restraint measures that the Republicans are pushing. Of course Ryan will not listen and so we are headed for an economic downturn over the next three years. Jamie Dimon was told the banking regulations are needed, so take it like a man. It is about time somebody put him in his place.
What does this mean for the markets? The dollar supported at a critical level and is headed higher. Gold was stopped at a critical level and is headed lower. Stocks basis the S&P 500 will shuttle around between 1185 and 1315 for the summer.