Feel the Heat? And we are not talking about hot summer days of August!!!!

It is August and the dog days of summer are in full effect! But that does not mean the market place is taking a vacation!
Over the last three weeks we have heard about the market stability from Ben Bernanke and company!!!!
But the sub prime and credit crisis is creating market volatility!
The volatility is causing chaos in the market place and Fed Fund Futures are not indicating one cut by the Feds in Sept but possibly an immediate second cut before the year end!
We are witnessing a disconnect between the powers-that-be and the market place, with Mr. Ben Bernanke and Mr. Henry Paulson (U.S. Treasury Secretary) stating that we have a solid economic growth and the market performing with high volatility.
Without any relief from the Feds, with at least one rate cut for 6-9 months, with a possible second cut before the end of the year, I foresee a continence in market volatility, uncertain value of bonds (base on lending), and consumers being squeezed, then shrinking the middle class!
The pressure is on Mr. Ben Bernanke. Can he, demonstrate control and understanding of the economy by anticipating the needs of market place to keep the U.S. Economy and U.S. Consumer on a stable path to growth or will be entering a bear market with lack of confidence, higher rates and driving the United States into recession.
Since the Greenspan days, this is Mr. Ben Bernanke's first at bat in demonstrating his abilities in understanding the market place and implementing a monetary policy that will stabilize the U.S. Economy.


FT.com / World - Global equities plunge as liquidity fears grow