The Bernank disappointed today by not announcing a bailout of the traders and speculators. Surprised? I'm not. I guess many of the hyper-inflationist don't believe what they heard. The Money Printer has his hands tied. And those hands will only be untied after the next leg down and a major drop has happened.
Unsurprisingly, Ben Bernanke blamed the US government for all the issues, and didn't make himself accountable for any of the problems.
Interestingly enough, the USD is still not reacting to the news — same for most commodities and equities.
The market didn't react much to this non-event, it barely moved down on the news and it's still about flat-ish.
I wouldn't be surprised if the market closed higher for today, given that HOPE is the only strategy I can see in the market. Everybody is loading up on risk, hoping for the Fed to jump in with QE3 or to start a new crazy programme consisting of buying futures contracts start an operation twist.
One more proof of denial?
Statement on BloombergTV: "The equities markets expectations were very low anyway"
Reality: Goldman Talking about a $1 trillion QE 3 programme.
I could fine many of these, including the fact that all analysts are screaming "BUY BUY BUY" this dip.
It's a bit disgusting to see that after a 15% decline in equities — this is minor! — speculators are already crying for a bailout from daddy Bernanke.
I said many times ago: HOPE is not a STRATEGY.
Hope and greed are blinding these lemmings, which will fall in the abyss of the market at the next leg down.