As I write, it is 10:07 AM and the world is eagerly anticipating Ben Bernanke's latest aria. As one might expect, the markets are tanking (with the Dow currently down by over 200 points). That's what is known as a "signal." Or better, yet a "cue." The markets are the chorus in this bizarre opera, singing "Help us help us help us, or we will all slide into perdition." That's Big Ben's cue to sing, "No, I'll never never never allow that to happen. Let QE3 begin." At which time the markets will reverse course abruptly and the day will be saved.
Unfortunately for this melodrama, the villain, aka Governor of Texas and likely Republican candidate Rick Perry has threatened our hero with dire consequences if he dare mess with our economy again, and since everyone is now running scared of anyone with ultra conservative creds -- it's gonna be an interesting morning.
The question on my mind is what will happen to the markets if Bernanke's aria falls flat. Will they follow his lead and flatten out with him? After all what's the point of continuing to signal if the signal has been ignored. Or will it continue to tank, caught up in its own reckless momentum.
We'll see very shortly. Fun fun fun. And it won't be over till the fat man sings . . .