Tuesday, July 17, 2012

Bernanke Frightens, Then Appeases Bankers; Markets Rip

Talk about the tail wagging the dog.

Today, in semi-annual testimony before congress, Ben Bernanke, Chairman of the Federal Reserve, did not give any hints to his banker/bankster friends that the Fed was planning any more easy money, i.e. quantitative easing (QE) events in the near future.

No hints of free money? Blasphemy! said the markets, as the indices fell from early strong gains to steep losses in a matter of minutes.

The Dow, which was up 40 points before Bernanke's written remarks were made available, fell to a loss of 82 points, with the other indices showing similar patterns.

But, during the question and answer period, the chairman began to make it clear that the Fed was indeed considering QE, albeit not quite as soon as the banking masters were expecting it, like in September, the timing nearly perfectly political for the election. Stocks reversed their losses, went positive and posted strong gains for the session.

Other than the words coming out of Bernanke's mouth, nothing else mattered today.

In the immortal words of the Mobambo Guru, "This investing stuff is easy. Wheeeeee!"

Dow 12,805.54, +78.33 (0.62%)
NASDAQ 2,910.04, +13.10 (0.45%)
S&P 500 1,363.67, +10.03 (0.74%)
NYSE Composite 7,792.15, +49.14 (0.63%)
NASDAQ Volume 1,722,949,375
NYSE Volume 3,239,712,000
Combined NYSE & NASDAQ Advance - Decline: 3436-2129
Combined NYSE & NASDAQ New highs - New lows: 325-113
WTI crude oil: 89.22, +0.79
Gold: 1,589.50, -2.10
Silver: 27.32, -0.01

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