Posted on July 15th, 2008 in Daily Stock Market / Economic News - The Real Story, Mr Mortgage's Personal Opinions/Research
They always say you can’t fight the Fed, and many times in the past year that has played out. As a matter of fact, Bernanke is on TV this morning, and his testimony helped to stabilize the market. Then, the SEC’s Cox short-selling announcement, which I do not really believe is new news other than certain trading protections for Fannie and Freddie, caused a rally.
The question is, how long will the rally last or will it end like yesterday’s pump and dump? Barry Ritholtz of whom I am a big fan, published this chart yesterday on his blog. It shows how quickly the market is become immune to the Fed’s rhetoric and how managing expectations going forward in order to control volatility in the financial markets may prove difficult for them. – Best Mr Mortgage <>