Yesterday's US equity markets sprint to a higher close has been attributed to Fed Chairman "Helicopter Ben" Bernanke's recent remarks that the US economy is still on an expansionary path. That everything is okay.
Well, what would you expect Ben to be saying?
"Head for the exits?"
"Buy gold and bury some food in the backyard while you're at it?"
One charming thing about now-discredited, prior Fed Chairman Alan Greenspan was that he tended to speak in riddles, leaving analysts and observers to form their own conclusions about the economy. Except, perhaps, for that "irrational exuberance" remark. Which turned out to be wrong.
I'm not surprised by Ben's remarks of the other day. I fully expect him to be waving those pom poms on the Hill this morning as he testifies before some House or joint committee.
What dismays me is how many investors, analysts and pundits still assign any credibility to Ben's remarks. Is it not clear that Ben has become a constant mouthpiece for good news? A virtual Pollyanna?
For me, Bernanke has become a valueless indicator, permanently stuck in the 'optimistic' position.
What good is that for providing honest and accurate economic information to investors?
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