Misreading the New Fed Governor Ben Bernanke

Todd Stein & Steven McIntyre (Texas Hedge Report) submit: So it finally happened. On a chilly Monday morning in October, news surfaced that the nomination of Ben Bernanke as new Fed chairman was imminent.

Immediately, the stock market rallied as the selection of the Wall Street-friendly Bernanke (who was the odds-on favorite) was seen as a positive development. Likewise, the Dollar dropped slightly and the precious metals edged up as most traders recalled Bernanke as the monetary dove who once declared that the U.S. Government could prevent deflation because the Fed/Treasury can “helicopter