This sets up a dangerous precedent for Bernanke, and it reinforces my suspicions that he's another Greenspan clone. August 17. December 12. Now January 22. Those were all surprise moves to either cut the discount/Fed funds rate, or introduce TAF. That's 3 surprise moves in less than 6 months. He's setting up dangerous expectations on Wall Street where the markets will be rescued anytime we get a big selloff. With the FOMC meeting just 1 week away, he blew it. He couldn't hold his load and just splattered it all over his banker friends. Market was very oversold so we'll probably rally till FOMC and maybe another few days after, but then we'll get another huge selloff where everyone will beg for another intermeeting rate cut. This is very similar to 2001.