Thursday, February 02, 2012

Bernanke Says to Keep on Spending!

Ben Bernanke warned about cutting spending today. With the economy growing at 2.8% and jobs numbers showing some big cuts (as blogged earlier), it does feel like the economy is a little on the fragile side.

Yet, the stock market is a discounting mechanism for the future, right? And we've had a really nice rally the last few months. We are beginning to see some faith in the markets as folks are shifting from the Dow stocks to the Nasdaq stocks. The biggest IPO in the universe is on the horizon.

Why is Ben worried? He has promised to keep rates low until mid-way through Obama's 2nd-term, 2014. He is warning the government about reducing deficit spending. It's almost like Bernanke is telling us that the economy is running on smoke and mirrors and stimulus at this point, huh?
posted from Bloggeroid

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