Friday Outlook: Playing the Cards You're Dealt

The previous Fed chairman formerly known as 'the Maestro' has handed Big Ben trouble. Bernanke made his mark writing academic studies about mistakes during the depression and similar events. All he thought the Fed needed to do was flood the market with money [the “helicopter” deal], lower interest rates quickly and things would be just fine. Inflation is the lesser evil if deflation is the alternative. [Hat tip to posters who reminded me of that yesterday.] But he’s in a box now putting his theories to work in real time. Sure, he’s cleaning up Greenspan’s mess but he didn’t write any thesis covering current conditions either. Nevertheless, he’s got the ball.

Breadth was negative and volume lighter. Investors caught the confusion bug once again.






















































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Comments

[janmejay sahu:]

nice graphs

2008 Feb 29 07:51 AM

[Joab:]

How old are you 12 ?

Seriously, Ben inherited a JOB not a deck of cards at a poker table.

Just like every other Fed Chairmen before him !

Grow up, his screw ups (lowering rates way too early and flooding the system too soon) are HIS mistakes nobody else's.

Greeny wasn't perfect but BEN made his own bed.

2008 Feb 29 08:44 AM

[floridadon:]

A good perspective. (despite what some may think)

2008 Feb 29 08:57 AM

[BobinBville:]

David,
I look for your articles every day. Never a dull moment. What are the symbols for the new db leveraged gold short and long. I agree that money will be made there. Your thoughts have been making me money for the past six months. If only I hadn't listened to my broker as often.

2008 Feb 29 01:52 PM

[David Fry:]

DZZ, short gold leveraged

DGP, long gold leveraged

I think that's right, but look before you leap.

2008 Feb 29 02:29 PM

[Mick Weinstein:]

Joab, the headline was created by us - Seeking Alpha editors - not Dave Fry. So we take responsibility there.

The question of who made Ben's bed is a worthy debate... so carry on.

2008 Mar 02 02:33 AM