Bernanke To The Rescue?

Bernanke spoke this morning, and for a while it really looked like he came to the rescue. The market surged over 150 points, but it has since faded as sellers reemerged.

I think what the market is saying is that if Bernanke is willing to admit that the economy needs further cuts and much more stimulus, why wait 3 weeks?!? Give us the cut now! The financials need it now. Consumers need it now. Get going.

Anyway, here are the highlights of his comments:

• Bernanke says additional policy easing may well be necessary
• Bernanke says Fed stands ready to take "substantive additional action" to support growth
• Bernanke prepared to act in a decisive and timely manner
• Bernanke says December job data 'disappointing'
• Bernanke says Fed paying particular attention to housing
• Bernanke says 2008 outlook worsended, risks 'more pronounced'
• Oil prices, lower equities, housing likely to weigh on 2008 consumer spending, says Bernanke
• Bernanke says T.A.F. auctions to continue as long as necessary
• Bernanke says Fed sees "considerable evidence" bank lending to firms, households now more restrictive
• Bernanke says despite impact of write downs on bank profits, share prices, banking system sound