I don't want to be an alarmist but it may be a while before we see Dow 11,000 again.
It seems that with Mr B's speech last night a threshold has been crossed.
THE GROWN UPS ARE BACK IN CHARGE OF THE DIALOGUE ON ECONOMIC AND MONETARY POLICY...!
IT TOOK A WHILE...BUT BERNANKE SIMPLY MUST START DOING HIS JOB...AND SAYING "BAD THINGS" TO THE SPECUALTORS AND THE WALL STREET BROKERS.
Bernanke ain't Greenspan...History has taken care of that.
So perhaps Dow 11,000 will become a distant memory as the new paradigm kicks in and the new equlibriums are established...
What's coming won't be pretty...but it will be necessary if the modern global economy is to survive in the longer term.
Postscript: FED shills to the rescue! Dow holds above 11,000 for another day. But really even the notion that the market masters would find that significant is a bit disturbing... Wall Street is going to have to get used to the fact that this is not their world anymore... Something totally new is coming.
