Is Bernanke Loaded With Bullets Or Just Playing With A Cap Gun?
By Nicholas Santiago Ever since the Federal Reserve Bank Chairman Ben Bernanke talked about quantitative easing part two the markets have been in full rally mode. Now, while this rally has occurred on some of the worst volume I have ever seen the point move higher cannot be denied. Since the August 25th low the S&P 500 is higher by nearly 12.00 percent. Ironically, this is almost the same amount of downside that the U.S. Dollar Index (NYSE: DIA) has declined since it topped out on June 7th, 2010. Today the U.S. Dollar has made a fresh new multi-month low at $76.90. The plan is to simply drop the U.S. Dollar against most other currencies and inflate the stock markets around the world. Can this type of action actually work? Ben Bernanke has said that he will do whatever is necessary to get the market up and the economy going. As far as quantitative easing goes it looks as if it has been going on already. Just look at a chart of gold (NYSE: GLD) and you will see that gold began taking off
