Home » Most Recent Stories

THE MARKET’S LOVE AFFAIR WITH BERNANKE

7 December 2009 by Cullen Roche 2 Comments

Few things have been more predictable in recent months than the rallies that occur every time Ben Bernanke opens his mouth.  Like clockwork, the market moves higher every time the Chairman speaks as he gives the market exactly what it wants to hear.  Today’s comments are no different:

bern

What is odd about this is that Bernanke has been so fantastically wrong about everything for so many years.  What warrants this extreme confidence in Bernanke?  Bernanke missed the greatest economic bust in the last 75 years.  Some argue that he helped us avoid the second Great Depression.  Of course, regular readers know I think that is simply preposterous as the Second Great Depression was never on the table.  All Bernanke has done is rehash a monetary policy approach that Alan Greenspan admitted was a failure.  There is little to no evidence in Bernanke’s history that leads me to think he will be correct this time.  The market is nearsighted and I believe this love affair with Bernanke is nothing more than a Tiger Woods like fling.  We can only hope the long-term repercussions aren’t nearly as severe as they will be for Woods….

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
  • BGray

    If someone is giving me free money right now I’d love him/her too. It only lasts until they stop giving me free money. That’s when I will throw a tantrum.

    12/07/2009 at 10:52 AM
  • SS

    This market is bi-polar. They’ll hate Bernanke in a few years. Anyone remember the Greenspan years? He was a hero forever.

    12/07/2009 at 10:59 AM