Friday, March 21, 2008

Oh, really

Bloomberg headline:

Commodities Drop, Rally in Dollar, Stocks Vindicate Bernanke

Financial reporting is not usually on my radar screen, except in times of crisis such as these. Blog Simple's budget is not in the range where fluctuations in the market mean much, so the general tenor of day to day business reporting is not something much noted around here.

So whether this type of article is typical, or extraordinary is something you'll have to judge for yourself. But that a couple of days of falling commodity prices and rising stock prices (after months of serious movement in the other directions) means that Bernanke strategy of dumping liquidity on the banks has been vindicated seems beyond absurd.

Wasn't the purpose to ease the credit crunch and get banks to lend to one another again? Has that been accomplished? Shouldn't we wait at least a week or two before scheduling the Triumph of Wall Street?


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