Ben S. Bernanke
Trying To Decide
The stock market spent most of yesterday trying to make a decision. The questions at hand include whether we know everything about why the Citigroup (C) breakup is taking place, if the 6% discount over the past 5 days is appropriate, if the relentless downgrades to earnings will be enough, and if there is another shoe to drop in the credit crisis.
The day got started on sour note after Fed Chairman Ben Bernanke noted that banks are likely to continue to need capital in response to further credit losses and writedowns. In a speech before the London School of Economics, Bernanke also warned that the government’s stimulus actions are unlikely to be enough to create a recovery unless further measures are taken to stabilize the financial system.
The good news was that the market managed to look past Bernanke’s comments, the earnings miss from Alcoa (AA) ...
