So yesterday was a pretty important day on Wall Street. Everyone wanted, no NEEDED to hear what big Ben Bernanke was going to say in regards to the economy and what the Fed would do to continue to help...(or hurt). Here is a brief clip from the Wall Street Journal walking you through what was said and decided yesterday:
Ultimately, nothing was said or decided except the Fed continues to admit they totally misjudged the severity of the recession AND they made no comments about QE3 (thank G-d). Many are expecting the Fed to deliver another round of quantitative easing, which in this author's opinion will only further weaken the economy. We have 2 major problems here: Inflation (which is growing quite quickly now) and unemployment.
Neither element that weighs on our economy like a 500lb weight will be fixed soon. Perhaps in the next 5 years. Perhaps. When you combine the two, you get STAGFLATION: STAGFLATION IS BAD!!!!
The Fed also said their September meeting would be 2 days vs. the traditional 1. This cannot be good....and it should come as no surprise given the lackluster economic data we have seen in the past 4 weeks (putting aside the market volatility).
So in my typical just jam it in your face, here is the bottom line: There is NOTHING the Fed can do to help, aside from stop helping. We don't need more money printed, we don't need more government intervention. We need spending cuts AND tax hikes RIGHT NOW. The system is broken, as is out political system and Ben yesterday basically told Congress to get their asses in gear. Good luck.
Guns and Gold people. Guns and Gold.
The Angry Trader.
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