Kass: Bernanke Made a Big Mistake

I clearly underestimated what the market's response would be to loosening credit. I was shocked and so were many market participants. The market bears were wrong.

It is clear that the data-dependent Fed recognizes -- as some of us have written -- that the economy's foundation, particularly the consumer, was cracking. The Fed's constituents (i.e., the banks) clearly warned Bernanke of mounting problems. (The economic bulls like Ben Stein were wrong, too.)

For now, the market appears convinced of the "Bernanke Put," though a small minority believes that yesterday's move was "one and done."

I am not, however, in awe of the Federal Reserve....