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.
*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.