Bernanke's flip-flops

[xmontrealer]

Gee I wish I had copies of Bernanke's speeches, and his prepared answers to predictable questions, a day or two before they become public. It would be better than having a winning Loto-Max ticket.

I wonder if he giggles at the stock market and financial community's immediate over-reactions to his flip-flops on how and when the Fed is going to take it's foot off the US economy's QE gas pedal?

I feel bad for the little guys who can't meet their margin calls and get sold out when the market dumps following one of Bernanke's negative comments, and then have to sit on the sidelines and watch as the investors who are still in the game make their money back when Bernanke "clarifies" his earlier stated position.

 

[pipelayer]

He had to moderate his tone. The USD was gaining too much strength against foreign currencies. That's bad for US economy.

 

[fun-guy]

He had to moderate his tone. The USD was gaining too much strength against foreign currencies. That's bad for US economy.

Strong US dollar reduces exports which increases unemployment, same for any other country. There is a global currency war with every country trying to keep their currency lower, it's a game of one upmanship which lasts for a bit until the next speech. Bernanke's comments helps equities for now, but could change next month. Investors are too reactionary and have lost the longer term vision. It's wild out there at the moment.