Ben Bernanke seems to think that a few more mistakes ...

[Hyperion]

… by him won’t really matter anymore but it is sad that he has convinced Washington to assist him on his path of destruction.

The U.S. economy screams for a recession and the financial markets are down on their knees and beg for a bear market and the more policy makers and anyone else will deny the markets what they want the worse things will get.

The more Bernanke and friends decide to push against the market forces the harder they will push back. Many of the problems have been created by market participants and actions the Federal Reserve has taken over the past 12 – 18 months or since Ben Bernanke took over. The problems have started before that and have been elevated ever since then.

The stubborn bullishness has added to the problems and the ignorance by the majority has not helped at all.

The sooner those individuals who attempt to fix the problems they have created stop the interference with the markets and give them what they want and need the sooner the problems will be solved. The markets work best with no interference.

There may be a plan announced tomorrow an ‘economic stimulus package’ but that is very likely to have very little or no effect at all.

The Philadelphia Fed Survey today showed that conditions have accelerated to the downside. Even worse for the Federal Reserve is the fact that Prices Paid have surged to a multi-month high Prices Received have also surged to multi-month highs which point to the potential of an increase in consumer inflation. The outlook six months from now shows similar readings and suggests that the problems may stay here longer then the majority expects.

The Empire State Index supports the Philadelphia Fed Survey and paints a similar picture. The PPI and the CPI released earlier this week show that inflation should not be ignored and has picked up over recent months. Ben Bernanke, hopefully in a final desperate attempt that will back-fire like all other measures he has attempted, will lower interest rates once again and now the government, who is known to mishandle situations like this and is clearly not the entity that anyone desires to take measures when it comes to fiscal management and monetary decisions, will announce a plan that will add to problems that the U.S. economy does not need, not now and not in the future.

Ben Bernanke seems to have lost interest in the destruction of the U.S. Dollar, but his soon-to-be rate cut or even rate-cuts will try to give it the final knock-out he desperately seeks, and puts his focus now on the total destruction of the U.S. economy. Why not, if you mess up mess up in such a big way that it will not be forgotten for generations, right?

The economy screams for a recession, markets beg for a bear market, the U.S. Dollar is basically worthless, inflation is accelerating, Ben Bernanke and friends try their best to make things worse so is there anything else?

Equities are still ridiculously over-valued. True, P/E ratios are low but P/E ratios are as worthless as the U.S. Dollar with the difference that they always were and the U.S. Dollar needed help to get there.

Do you want proof that P/E ratios are worthless?

All you need to do is look at all mutual funds that use P/E ratios as one of their major arguments to buy into markets. Oh, right. They have a time horizon that will outlive their investors (that is a slight overstatement but the point made is clear).

Today’s market action delivers a clear message:

We do not trust any plans that may be announced over the next 24 hours.

There is a healthy pull-back which may continue for a while, along the road we will get small rallies to get out of extremely oversold conditions but each time a lower high will be reached and a lower low will be the result of the next leg down.

There are tremendous profits to be made, regardless of the market conditions but it is up to management and their teams to realize those profits for their clients.

[BadThad]

I hate hearing the Gov getting involved......arrrrgggg.....they will never learn! Stay the hell away from the financial markets! Worse yet, we're looking at a bunch of socialists running on the democratic side. If they win the election, it's going to get much, much worse. More taxes, more social programs, more goverenment and more meddling in private financial affairs as they struggle to obtain the cash for their worthless, mis-managed programs. Hilary said she would want $30b to bailout subprime lamers. Dear God help us if she wins, I think I'm going to move to Cuba as I'd rather live under Casto's thumb!

[Hyperion]

Yes, that is very true. Should any Democrat win the election things will get worse before they become terrible...hey, at least they will only have four years to kill the economy

Their social programs and economic solutions will make things even worse and are definately not the solution to any problems but they seem to sell their idea to many middle-class voters. Just like mutual funds...take a medicore product or worse and sell it to the masses as a good idea...

[Grizzums]

Any notion that dimocrats are any bigger government spenders that rethuglicans these days is about as laughable as a notion that our current economy is actually a "free market" economy.

The small government fiscally responsible republican party is history. It disgusts me.
Any true conservative is laughed at by the big government credit card 'new' republican party these days. What a joke.
I'm no longer a 'lesser of two evils' player...enough is enough...but the American ignorant sheeple public will probably just continue to throw in the towel and eat that tasty 'lip service' bs right on up.

Stimulus package...

Ha!

Politicians continuing to try and treat the economy as a political problem rather than an economic one.

Rebates will get political applauses but will do little to nothing to help the overall economic condition. Forward looking incentives to get American businesses and consumers to learn how to work, save and invest rather than borrow, overextend, and overconsume is a better solution. Do that by lowering tax rates...but that does not and would not help the economy immediately...but then again, this economy needs this bear, imo. One just needs to look at ygr 2001 rebates and the 2003 rate cuts to see what helps stimulate growth. But then again, spending needs to be cut with tax rates and god knows neither party is capable of doing something sensible like that. Our wonderful greedy, instant gratification society at its worst.

I basically continue to agree that bernacke just continues to make one fumble after the next. The earlier moves have just made the current problems bigger, imo...and they will continue to do so with the next cuts.

As far as inflation...I still find it funny that CPI and PPI are the biggest gauges of that by the government. Oh geez. I sometimes wonder what world they live in.

The market will eventually turn and recover and at my age, I do believe that I will be a beneficiary of this as long as I continue to play smart. Its just unfortunate that some lessons are never learned

Fix it bernacke....fix it...fix it federal government...fix it...!!! I have faith in you!!!

Roflmao...yeah...sure!

I have faith in myself.

All just my ignorant .02.

[BadThad]

Griz....did I tell you lately? I LOVE YOU MAN! You GET it!

[Hyperion]

It is not smart to play it safe but it is safe to play it smart. You are right, if you play it smart you will benefit.