Xmas Rally?...or Xmas Deepfreeze?...

There are 4 more FOMC meetings before Xmas...the fourth is on December 13. The Fed should have a good idea of how things are going from information contained in the Beige Book (which is made public on November 30) in order to guesstimate how the fourth quarter will end for 2011. Perhaps we'll get a signal from the Fed as to what their next move will be with respect to economic conditions and their remedies for any malaise that may be around at that time.

It would seem from Mr. Bernanke's talk this week that he is focused on long term economic conditions, and this says to me that he is willing to throw more money at the markets in the shorter term at some point...this and his unwillingness to begin to reduce the deficit at this time. The crucial question is, when will he begin to reduce the deficit, instead of wildly throwing more money at the wall (street) and hoping it will stick? Especially if he still doesn't know why his "recovery" isn't happening at that time. That would be akin to a Surgeon performing brain surgery to try and fix a sore foot without knowing the cause.

And, please, Mr. Bernanke, produce only credible causes if you have anything to report at that time.

"The recession has hit everybody...I got a pre-declined credit card in the mail."

Author--Anonymous