thechartpatterntrader
New member
8/30 Today's swings back and forth made me sea sick. The bulls and bears continue to fight it out. The market movement today added no clues as to long term direction. However, investor's are going to keep their ears to the wall tomorrow, when Fed Chair Ben Bernanke gives his speech. I am sure Mr. Bernanke will choose his words carefully.
So the question is, will 'Helicopter Ben' Bernanke become the knight in shining armor, coming to rescue Wall Street? Will he use his mystical sword to slay the 3 headed dragon.
By slaying the 3 headed dragon (the credit crisis), it enables the hero (Bernanke) to live 'happily every after,' having saved the kingdom.
If he gives no hint of a rate cut, the market may react unfavorably. The recent credit crisis has forced the Fed to pump billions into the banking system. Which makes investors wonder if the next move is to cut interest rates.
Bernanke got the nick name 'helicopter Ben,' when he taked about a 'helicopter' drop of money, which he referenced in a 2002 speech. On Milton Friedman's ninetieth birthday, Nov. 8, 2002, he gave a speech on deflation. Milton Friedman is a famous conservative economist. Bernanke referred to a statement made by Milton Friedman about using a 'helicopter drop' of money into the economy to fight deflation. Bernanke's critics have since dubbed him 'Helicopter Ben.'
Now that the Fed has cut the discount rate and they have made a 'helicopter' drop of money in the banking system, it has sparked speculation that the bank's next move will be to cut rates. Wall Street would welcome the 'helicopter' drop of money in the form of rate cut. This would allow new money to be tapped to stimulate the economy. If the Fed drops the ball as Mr. Greenspan did back in 2000, then the bull market has a greater chance of ending. The next Fed meeting is Sept. 18, but some speculators think the Fed may cut rates sooner. So lets see if Bernanke is flying his helicopter around, over the next few weeks.
Have a great holiday,
The Chart Pattern Trader
So the question is, will 'Helicopter Ben' Bernanke become the knight in shining armor, coming to rescue Wall Street? Will he use his mystical sword to slay the 3 headed dragon.
By slaying the 3 headed dragon (the credit crisis), it enables the hero (Bernanke) to live 'happily every after,' having saved the kingdom.
If he gives no hint of a rate cut, the market may react unfavorably. The recent credit crisis has forced the Fed to pump billions into the banking system. Which makes investors wonder if the next move is to cut interest rates.
Bernanke got the nick name 'helicopter Ben,' when he taked about a 'helicopter' drop of money, which he referenced in a 2002 speech. On Milton Friedman's ninetieth birthday, Nov. 8, 2002, he gave a speech on deflation. Milton Friedman is a famous conservative economist. Bernanke referred to a statement made by Milton Friedman about using a 'helicopter drop' of money into the economy to fight deflation. Bernanke's critics have since dubbed him 'Helicopter Ben.'
Now that the Fed has cut the discount rate and they have made a 'helicopter' drop of money in the banking system, it has sparked speculation that the bank's next move will be to cut rates. Wall Street would welcome the 'helicopter' drop of money in the form of rate cut. This would allow new money to be tapped to stimulate the economy. If the Fed drops the ball as Mr. Greenspan did back in 2000, then the bull market has a greater chance of ending. The next Fed meeting is Sept. 18, but some speculators think the Fed may cut rates sooner. So lets see if Bernanke is flying his helicopter around, over the next few weeks.
Have a great holiday,
The Chart Pattern Trader
