Will Bernanke Bow Out Before or AFTER Stocks Collapse?
by Phoenix Capital Research
ZeroHedge.com
06/01/2013
Back in January, I noted that the Federal Reserve had subtly changed its language regarding the effectiveness of QE as a monetary strategy.
The first indication came from the Fed’s December 2012 FOMC minutes (the meeting during which the Fed announced QE 4). Since this time there have been several key developments. They are:
Bernanke has announced he will not be attending the Fed’s annual Jackson Hole meeting.
The Fed’s favorite reporter at the Wall Street Journal, Jon Hilsenrath, has written a story indicating that the Fed is considering tapering off its QE efforts before the end of the year.
Bernanke all but admitted that stocks are in a bubble as well as the possibility of a “sharp move.”
Regarding #1, Bernanke claims he can’t make the Jackson Hole meeting due to a scheduling conflict. This is akin to the President of the US announcing he cannot give the State of the Union address due to a scheduling conflict. It is, in a word, impossible.
Much rather, Bernanke is signaling that he is looking to step down at the end of his term as Fed Chairman in January 2014.
If this is the case, then Bernanke is likely thinking about his legacy. Will be leave the Fed with not a pinch of ammo left in its arsenal?
Not likely.
The Rest…HERE
