During the next 24 months, we will finally know the answer to the following question:
Did Ben Bernanke, Hank Paulson and Tim Geithner get it right?
Currently, the Dow is above 10,000 and the S&P 500 is above 1,000. If that type of performance can be maintained over the next couple of years, there are a lot of people who will owe these gentleman a public apology. I mean the type of public apology that is made through full page ads in major newspapers.
Sure, the employment situation could be better. Granted, the stock market isn’t back to its high, but the price levels certainly could be lower. Based on the insanity of the last 15 months, it’s hard to argue that Bernanke & Company messed up.
As it turned out, you had to be pretty stupid to not make money in 2009.
Bernanke & Company threw every ounce of economic theory at this problem, and it appears to be working. However, if the Dow hits 4,000, we will finally know that hypothetical theories can't prevent a real bubble from bursting.