It's all a confidence game, in reality. The economy is getting worse, not better. The unemployment rate is still rising, 24 to 30 million Americans are either jobless or underemployed, home foreclosures are running at an annualized rate of 3.7 million, commercial and office real estate is starting to plunge, government deficits are mushrooming, and the baby boomers are in sell-off assets (in a depreciated market) to raise cash for retirement mode, as they've gotten brutally beaten, and the government is talking "up" things in a manner that would make Goebbels blush. The government knows their last chance to avert an outright depression is to do and say anything in their power, which is waning, to keep consumers confident enough to keep shopping. Yet, the savings rate is rising at the fastest clip in the post-WWII era.
Bernanke is an academic buffoon and a tool who was fiddling with his models while the markets burned. It took a game show host (Cramer) to wake him up, and he then said it was "contained". He is such a tool he probably thought he would be making the decisions as Fed Chairman. As for the talking heads they remind me of the Iraqi Information Minister who always said how Iraq was winning until one day he didn't turn up - the day US tanks rolled into Bagdhad................................. <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/CXl1GkWWGmA&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/CXl1GkWWGmA&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Wonder if he is going to say the recession is nearing an end in todays meeting while keeping rates down at 0%. He is going to recycle the same thing he has been saying for the last year.... rates unchanged little threat of inflation printing press stays on programs remain in place etc etc etc.....
Yes bernanke's speech as always 2010 "recession may end this year" 2020 "recession may end this year" 2030 "recession may end.... 2035 "oops usa has ceased to exist, okay i retire"