Bernank’s Bluff and the Coming Crash
by Phoenix Capital Research
Yesterday’s move confirms what everyone suspected, that Ben Bernanke is more of a CNBC stock market cheerleader than a Fed Chairman or businessman. Is there really any other interpretation for his clear and obvious verbal intervention in the stock market? Can we really look at his actions and say that this is a man who legitimately knows what he is doing?
After all, Bernanke did not actually introduce any new policies. His Fed is torn about how to proceed with half of the Fed Board wanting to end QE by the end of 2013. And yet Bernanke felt the need to speak after the market closed about how he will keep the money printers going ad infinitum.
Who cares if the entire recovery is based on accounting gimmicks? Who cares if there is literally no evidence in history that QE generates economic growth? Who cares that Bernanke is literally betting the financial system that his flawed theories are in fact correct? Stocks must go higher!