Tag: Bernanke - 24/7 Investor

NYSE:C |

Bernanke’s Second Chance and Dr. Doom Returns

As if there had been any doubt, Fed Chief Ben Bernanke was nominated for a second term. This is a good move in my opinion. Especially now, switching horses midstream would seem like a dangerous move. Plus, my biggest gripes about the various stimulus plans and bailouts are with Congress, not the Fed.

Analyst Downgrades Drag Down Stocks

Have you noticed that analysts are starting to downgrade stocks? Sprint Nextel (NYSE:S), Yum Brands (NYSE:YUM), PETsMART (Nasdaq:PETM), MBIA (NYSE:MBI) and Aegon (NYSE:AEG) were all marked down by analysts yesterday.

Coverage was initiated on American Express (NYSE:AXP) at "Sell" by Ladenburg Thalman. Boeing (NYSE:BA) and Research in Motion (Nasdaq:RIMM) have also been downgraded in the last few days.

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AAPL, YHOO, and USB Up On Earnings Reports

Fed Chief Ben Bernanke went before Congress yesterday to reassure lawmakers that he has an exit plan for his inflationary monetary policies. And apparently the markets were soothed by his plans, because everything rallied - bonds, stocks and the U.S. dollar.

Most importantly, Bernanke has been pretty adamant that inflation is not a threat right now. Prices are still falling for homes and commercial real estate. Demand for oil is down. Unemployment is rising. None of these conditions suggests that more money will be entering the economy in the form of spending.

AAPL |

How Bernanke and Geithner String Along the Rally 24/7

Bravo. The government’s handling of the financial crisis and recovery should be recognized as a masterful performance. At least, so long as you don’t look too deeply into the numbers…

Bernanke and Co. have managed to restore confidence to the point that economist Paul Krugman has joined the ranks of those who think we are only a couple months away from actual GDP growth.

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C and WFC “Profits” in Question

I don’t like to accuse people of lying. Those are fighting words. But after last night’s 60 Minutes interview with Fed Chief Ben Bernanke I am compelled to say that I don’t think he’s telling the truth about America’s banks.

The interviewer asked point blank if Bernanke believed our banks are solvent. Bernanke responded with an unblinking, unflinching "yes."

Of course he used the recently performed "stress tests" as his measuring stick. And that’s where the problems begin…

WFC |

Oil and Recovery

Oil prices have moved over $50 a barrel. There are a few factors at work here. OPEC’s cut production. Of course, that’s been ongoing, and OPEC’s moves have done little to prop up prices as demand around the globe falls.

GHM |

Inflation Coming?

Yesterday, the FOMC voted unanimously to buy over $1 trillion dollars in U.S. Treasury bills, corporate bonds, mortgages and consumer debt.

Chief economist at Bank of New York Mellon Corp. called it a "Rambo Fed" move in a Bloomberg interview. He said "This is a very powerful and aggressive move…"

GLD |

Bernanke Beats the Drum

Fed Chief Ben Bernanke keeps beating the "Recovery in 2009" drum. It seems he’s confident that the measures taken by the Fed, Treasury and Administration will free up the banking sector and get money moving again.

Anecdotal Evidence

Stocks finished lower yesterday after Obama’s speech. The lows were hit early in the day and stocks managed rally to positive territory before finishing slightly in the red.

What to make of this? Not much, unfortunately. Ultimately, I think it was a reaction to Tuesday’s overzealous rally. Tuesday seemed to be about short-covering after the S&P 500 held above its November lows at 741.

While Bernanke’s testimony before Congress on Monday was far more significant than any specifics Obama mentioned Wednesday night, neither event seems to be affecting stocks much. Except for HMO stocks. They’ve been killed this week as Obama is making a push for healthcare reform.

SXCI |

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The Fed?s About Face

It’s been my contention that oil prices will remain range-bound for the foreseeable future. And the 60 Minutes story I relayed on Monday supports that belief. If oil’s move to $147 was based on more speculation (and manipulation), than it was on true supply and demand issues, then it’s going to be a while before enough demand returns to push oil prices significantly higher.

GHM |

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