Sometimes a song just pops in your head.
You just can't seem to get rid of it.
This is one of those times.
The song on my mind is "Don't Let Me Be Misunderstood" by the Animals. Here it is:
Baby, do you understand me now
Sometimes I feel a little mad
But don't you know that no one alive
Can always be an angel
When things go wrong I seem to be bad
But I'm just a soul whose intentions are good
Oh Lord, please don't let me be misunderstood
Baby, sometimes I'm so carefree
With a joy that's hard to hide
And sometimes it seems that all I have do is worry
Then you're bound to see my other side
But I'm just a soul whose intentions are good
Oh Lord, please don't let me be misunderstood
If I seem edgy I want you to know
That I never mean to take it out on you
Life has it's problems and I get my share
And that's one thing I never meant to do
Because I love you
Oh, Oh baby don't you know I'm human
Have thoughts like any other one
Sometimes I find myself long regretting
Some foolish thing some little simple thing I've done
But I'm just a soul whose intentions are good
Oh Lord, please don't let me be misunderstood
Yes, I'm just a soul whose intentions are good
Oh Lord, please don't let me be misunderstood
Yes, I'm just a soul whose intentions are good
Oh Lord, please don't let me be misunderstood
Perhaps that shows my age.
On second thought, there is no "perhaps" about it.
Anyway, the reason that song is playing in my head is because of Bernanke.
Marketwatch is reporting Bernanke feels 'misunderstood'.
U.S. stocks turned lower Monday after a CNBC anchor said Federal Reserve Chairman Ben Bernanke had told her that the markets had misunderstood his congressional testimony, interpreting him as more dovish than he was on interest rates. Noted CNBC news anchor Maria Bartiromo announced on the air that she had a private conversation with Bernanke at a Washington dinner on Saturday and Bernanke told her that the media misunderstood his remarks. In testimony to Congress on Thursday, Bernanke said: "there is ... the possibility that if there is sufficient uncertainty, that we may chose to pause, simply to gain more information to learn better what the true risks are and how the economy is actually evolving." Bartiromo said that Bernanke told her that he was trying to create flexibility for the central bank and data would determine rate moves.
What I want to know is how many more rallies will we have on news of a Fed pause. It seems we have had the same rally at least 5 times now. The real question is "why should it matter?". Face it. Housing is over regardless of when the Fed pauses. Given that "Housing is the economy, stupid" it's only a matter of time before the market finally cares.
Bernanke is in serious trouble and I wonder if he knows it. If he pauses, gold silver and commodities may do a "moonshot" and whether or not he does, housing and the economy is "burnt toast".
Here is a 15 minute chart of May 1st action for you. Guess when "Bernanke claimed to be misunderstood".
It seems the market does not like it when Bernanke is "misunderstood". On second thought that is not quite right. What the market does not seem to like is the idea of more rate hikes. The homebuilders do not seem to care much for it either.
Meet the real world Ben Bernanke. You are damned if you do and damned if you don't. By the way, I would appreciate it if you keep hiking. A truly fantastic long entry on the 10 yr treasury would be appreciated.
$Ben, just so that I am not misunderstood, let me state flat out that you and I both know that you are scared half out of your pants. It seems the scenario you now face is this:
- Inflate or Die
- Inflate and Die
Are you hiding behind door #1 or door #2?
