New Item: Attention Wall Street, “Helicopter Ben” Bernanke has decided that saving hundreds of millions of over-leveraged consumers and the U.S. economy is more important than teaching you all a lesson–and to hell with the “worthless piece of paper” once known as the “mighty dollar.” Oil’s back below $90, new house sales saw a tiny up-tick, hedge fund Citadel bailed out e*Trade, Q3 GDP soared, and the stock market is once again suggesting we’ve hit bottom. So belly back up to those tables and start rolling again.
- Rate cuts usually take six months or more to kick in.
- Last time, the rate cuts took 2 years to kick in.
- Housing is still in awful shape.
- Banks still have no idea how much money they’ve lost
- Major layoffs have begun
- Violent upward moves are a hallmark of bear markets.