A long weekend begins today- hehe, so many people take the day off to stretch it into a four day weekend - so the market would otherwise be dead.
But, we have Benspeak in ... Jackson Hole - sheesh! What a Junket!
And some economic news - the PCE inflation index comes out for July. That could be important. And the August Chicago PMI number comes out. That might be a sign if the economy got hit hard by the credit crunch.
So a lot might cause big swings on a thin day.
WSJ story says that investor properties in CA, AZ, FL, NV, etc. are causing about 30% of defaults. Serial flippers got caught on their last flip. That's just the greater fool theory at work. Tough. They have no excuses.
Fed says discount window borrowing has fallen, "suggesting the bank has managed to calm markets" ?! Bullcrap! The discount rate is a penalty rate STILL. Fed fools at work, being delusional on their government paychecks. Patting themselves on the back while failing. Grrr.
Futures are up quite a bit early, purported on a W speech on programs to help subprime borrowers. That's questionable reasoning.
I bought a good bit of stock yesterday and shifted more money from bonds (TIPs) to stocks (across the board). I think the Fed will be forced to act soon even if they are too bone-headed to do the right thing anyway. So I'm positioning for the next big move up.
PS: Year-over-year core PCE inflation is 1.9% for the second straight month. Inflation is dead. Overnight money at 5.25% vs. 1.9% inflation is tight money. Having tight money in the face of a risk of a slowdown is Hoover-esq.
PPS: The Chicago PMI for August was OK - 53.4 indicating the expansion is still working - no big drop in August. Good news.
P^3S: The Bernanke speech was rather poor, imho. He's not showing any leadership at all. He's not looking ahead at all. So far, he's just reacting and making inadequate moves. It's another example of why the Fed needs adult supervision. Compared to J. P. Morgan (the elder), today's Fed is a limp-wristed, bespecked fop.