[quote=SK in CV]
That’s the thing that I really don’t understand about what’s happened in the market. They didn’t change course. Bernanke said the same thing he’s been saying for a year at least. Basically he’ll keep feeding the junkie until the methadone kicks in. It’s not the first time it’s happened, but I think this might be the biggest move after an FOMC meeting. As far as maintaining market stability, he’s really between a rock and a hard place. He farts and the market panics. He doesn’t fart, the market panics.[/quote]

I think the market is starting to figure out that the fed really isn’t in control as much as they’ve thought. For awhile people have been thinking that the fed is an insurance policy for being long. I think people are starting to open their eyes and see that economic conditions across the globe are deteriorating and that faith in the fed might not be able to save them.

I kind of expect faith in the fed to be similar to subprime is contained during the last bubble pop.