Bernanke Blinks, Taper Gets Tapered

Just as the blood and guts of both the bond and stock markets were beginning to sploosh over the railings, Captain Bernanke and his surrogates fired a shot across the tape, calling a halt to the slaughter.

In what could only be described as a coordinated counter-offensive, the FOMC’s doves did a flyover, dropping their droppings atop everyone’s heads amidst the life or death struggle happening below.

First this:

*FED SOURCES: LASTING STOCK LOSS, YIELD RISE COULD BE HARMFUL

*FED SOURCES NOT SHOCKED BY MARKET REACTION TO TAPER SIGNAL

and then Hilsy chimed in with a WSJ “analysis” piece

*WSJ’s HILSENRATH – Analysis: Markets Might Be Misreading The Fed’s Messages

*WSJ’s HILSENRATH: Analysis: Overlooked ‘Dovish’ Signals In Bernanke Press Conference

and then Bullard hits the tape with a chide via Reuters:

*Bernanke bond announcement ‘inappropriately timed’ Fed’s Bullard

We shall see if this can stabilize the situation and keep the pirates from burning down the vessel.