Dow Opens Down 100+ Despite Bernanke Bail-Out!

As has occurred when the Fed intervened in the past, the stock market rallied yesterday. However, often over-looked is the delayed reaction to Fed interventions. Typically, within a few days following the Fed's bail-outs, markets then reverse to the down side. After Fed Chairman Bernanke's promises yesterday of more easy credit, I expected a longer rally. However, today, stock market fears have driven the stock index futures to reverse again and move sharply downward. This I also expected, but not quite as quickly as has occurred. The assumption in the markets is that because Mr. Benanke reacted so forcefully, the Fed must know that circumstances are much worse than we had thought.