So what do you think Bernanke’s next move will be at the Fed?
Just months ago, 57 out of 57 economists surveyed predicted that the economy would avoid a double dip recession. Now they’re not so sure. Stock market gains have been wiped out and the S&P 500 has dropped 14 percent from its high in April. All of the main economic indicators are testing new lows. The so-called “soft patch” is looking like another hard landing. The fear is palpable.
In fact, the markets have been holding on by their fingernails hoping that Bernanke will bail them out. But it’s going to take more than the usual promise of low interest rates for an “extended period” to boost enthusiasm.