By Dave Fry, founder and publisher of
and author of the best-selling book
February 24, 2010
BERNANKE'S GIFT TO THE STREET
Wednesday investors were greeted by poor New Home Sales data and understandably reacted badly to it. But that was just a warm-up act for Bernanke's testimony which assured bulls interest rates would remain lower for an indeterminate period. (How about until hell freezes over or the Fed runs out of ink and paper?!)
The odd thing is gold fell with this easy money testimony while the dollar did little. Crude oil rose sharply despite a greater than expected rise in supplies.
Volume was light and breadth positive.
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Bernanke delivered the goods (cheap rates) to those (think "primary dealers") who know exactly what to do with it--trade the hell out of it. It isn't nonsense to think this given the nature of "trading" profits earned and reported by those institutions. Wouldn't you like to borrow at near zero and do the same? Sure. How does it help the economy beyond WS? It doesn't and that's what folks are complaining about. I'm just sayin...
Thursday is Jobless Claims and Durable Goods. It will be interesting which of the two investors will hang their hats on.
Let's see what happens. You can follow our pithy comments on
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Dave Fry is founder and publisher of
, Dave's Daily blog and the best-selling book author of
, published by Wiley Finance in 2008. A detailed bio is here: