This notion that Bernanke is going to "do something" with rates...is totally misguided.
Once the modern FED "STOPS" or "STARTS" a rate cycle it is almost impossible to change course...
The markets would crash if the FED raised rates... And the market would soar wildly to 15,000+ on the Dow, if the FED lowered rates even 25BP...
It's simply the natural consequences of our "hype-based" market system in play in the US markets...
It is all based on perception...NOT MACRO-ECONOMICS...
Why? Well because the US economy has been operating TOTALLY outside of the rules and laws of macro-economics for years!
This essentially makes the US stock and bond markets...a work of fiction! For which the Greenspan could be given the Nobel Prize in Literature...BUT NEVER ECONOMICS!
