Bernanke's back!

For a while it was all Geithner, but now we must be in need of some big bearded bullshit, Ladies and Germs, the head of the Fed!

Wild applause, the market goes crazy!

Read this post by Bruce Krasting. Here's the start:

Bernanke laid it on the line today. I heard him say that the Fed and Treasury were going to provide debt and equity capital to many of the Nation's banks. Failure to do so was not an option. He pledged that the Risky Lending Standards of the past would be eliminated. He promised to ‘fix’ the errors that had been made by the misguided bankers.

It sure sounded good. The market even liked it. It is bunk.

B. Krasting goes on to say why. Read it.

Reading posts like the above and then listening to Barack Obama tonight is like begging for a cerebral lesion. The rhetoric of the media and the pronouncements of the politicians have no connection to the facts of the great unraveling.

UPDATE: More good news from Bernanke:

"We're not making it up," Bernanke told the House Financial Services panel.

"We're working along a program that has been applied in various contexts," he said. "We're not completely in the dark."

(h/t Calculated Risk)