"The Fed's decision to boost a key short-term lending rate to 5 percent was widely anticipated. But investors were rattled by the central bank's accompanying statement, which said more policy firming -- or rate hikes -- could be necessary to contain inflation. The Fed indicated it would be closely watching economic data to determine its next step." Full story here
Well, of course the Fed will be closely watching economic data! Is that supposed to be a new concept for them??? I think Ben Bernanke is asking himself one question for every report he publishes, "can I make Wall Street think I'm unpredictable?". Mr. Bernanke is still trying to prove that he is not the Mini-Me of Alan Greenspan, and can actually think on his own.
It's almost fun to watch the Wall Street herd jitter and jump every time a croc or lion is spotted, whether there is one or not!
One interesting note, a colleague at work stopped by my desk today to ask, 'what's going on with the markets today? They're going down.' I didn't know what he was talking about, because I have been watching the healthcare stocks like UNH and CVH to see if they'll continue to plummet. The past few days, they've been rising dramatically. And that is ONLY because I put money down against CVH!
Here's to the Game, and my first post!