Markets oblige today too…
Bernanke Calls For Additional Stimulus, China Set to Oblige
Courtesy of Stock Jockey at 1440 Wall Street
Ben Bernanke’s stock is going up in some quarters, driven in part by his testimony today in front of the Senate Budget Committee. Bernanke lashed out against the Financial Products division of AIG, which was Ground Zero for much of what ails us. The remaining employees there deserve to be driven from the land….as soon as their contracts expire and their book is squared away and run off. The $1.25 million retention bonuses the traders received were obscene, and they are lucky they will not be given show trials given they are the equivalent of war criminals.
Bernanke’s was hopping mad about it today….but it is time to move on. He not only dodged the politicians asking loaded questions, but called for additional stimulus measures. How soon will we see U.S. Stimulus 2.0? Perhaps China was listening to Ben; they reportedly are set to add another $585 billion to their stimulus package, and all is good in the overnight.
For the moment the U.S. is the best house in a bad neighborhood, and if you can deal with that than I might just have some inventory for you around 740 on the S&P 500. Optimistic? Maybe, but most people have forgotten stocks go up too.
Geithner is up at 10 AM EST today; a little stimulus combined with the TALF and more clarity from Tim could help shrug off the bad news that is sure to surface…
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Fed Chairman Backs Call for Higher Spending
NY Times
China May Announce New Stimulus Measures Tomorrow
Bloomberg