Bernanke’s comments recognized that the problems appear to be structural and not short term. That’s great but it’s been shouted at him and the administration for a long time.
Announcing that The Federal Reserve would keep interest rates where they are for two more years is actually depressing emotionally. It shows no expectation of recovery or the potential for a problem we, the public, don’t know about.
Both signals from the Fed Chief say basically they don’t know what to do…which is not what gets stock markets moving.
Stability and a clear action plan (leadership) would allow the market to look forward. Normally my glass is half full. I am feeling right now that my glass is half empty because there is no leadership that does more than state the symptoms of illness. What we need is a leader who can tell us what the illness is – not the symptoms’ – and what actions are being done to heal the patient. Only then can we move forward.
The illness is well defined. Our Politicians are not addressing it.
We have too much debt and waste in Government and we have too many regulations choking small businesses.
Aug 4, 2011 Administration Adds 608 Regulations — Just in July! By Paul Bedard, U.S. News and World Report
Stocks are poised for a huge rally on news of a tangible and specific action plan. When that leadership comes is what we are waiting for.
From a good source who would know, I am hearing that Homeland Security is preparing for domestic terrorism and civil unrest similar to what is happening in Greece and London. That is, just in case it was to happen here. Perhaps it has already begun.
This is not uplifting I know. I am trying to interpret the situation as I see it and state it accordingly.
Our problems are not that unique. There are real solutions but it seems no one is willing to take the action to deal with them on a national level.
Do not misread my belief in and for the stock market. It is where the greatest opportunity lies for financial freedom and independence. It is just frustrating to believe you know what the problem is and not see our elected officials take action to solve those problems.
This is a great time to buy stocks! How do I know? Because I am down emotionally on the stock market and that does not happen often. When it does happen, we usually have a big rally.