The Stimulus Comment That Agitated Traders

The New York Times: Business Day, Friday, June 14, 2013

News Analysis: Wall Street Agitation over Bernanke’s Stimulus, by Peter Eavis

“Amid the current turmoil in global markets, one question is being obsessively debated on Wall Street:  Just what was Ben S. Bernanke thinking three weeks ago when he said that the Federal Reserve might soon cut back its stimulus efforts?

Since May 22, when Mr. Bernanke made those remarks, global stock markets have lost $3 trillion in value, according to the Bank of America Merrill Lynch.”

Among the four theories postulated by Mr. Eavis, the correspondent, is “A Tap on the Brakes,” that Mr. Bernanke” has shifted his stance…he has intellectually moved closer to ending the asset purchases than people might realize…”

“Back in December, the Fed didn’t know if we would fall off the fiscal cliff, said David Rosenberg, chief economist at Gluskin Sheff & Associates.  So it may have thought, ‘We’ll shoot now and think later.”

If in doubt, one might shoot  first and ask questions later.  Of course, shooting with a shotgun or rifle while hunting (or “shooting” in Great Britain) is a sport.  The same can apply to a  state of war, but that is not what this site is about.

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