Senator 'Spending Truck' Schumer sees no vote on Bernanke's reconfirmation this week. The deadline is January 31, so that leaves a mere 10 days. This could be a contributing factor in today's sell-off. It would be a non-confirmation, Bernanke Black Swan.
Nassim Taleb is undoubtedly grinning like a mofo somehwere today, off grid, of course.
If you want the likely real reason for the 3% sell-off we have seen in equity markets the past 2 days, look no further than the hedge-fund in disguise prop-trading desks all over Wall Street.
The Obankster bank levy (a mere pinprick really, but still, you don't prick the Beast without getting gang-knifed in return), and last night's word that Paul Volcker is finally being heard inside the Oval, plus news that Obama will attempt to shed the Obankster label with some actual reforms to the system (limits on leverage, prop trading, call it a weak Glass-Steagal II) are ALL having their impact.
HOWEVER, do not automatically believe that the proposed reforms are real. The Obankster is a skilled clinician with the spoken word; he has a history of grand rhetoric and non-existent follow-through. Geithner had a covert meeting with Bank CEOs last night, suggesting that he is working behind the scenes nefariously. Do not forget that history has rewarded the Obama observer who has not believed in a single promise, from 2006 up to and most definitely including, today.
So, back to the sell-off. The Wall Street prop desks run the stock market, and yesterday and today, not unlike the panic sell-offs of September 2008, are simply the work of the Beast as it shows Washington who wields the power and sets the rules. Nothing like 1,000 points off the top to show your captured Senators that you're still the Boss.
Nothing to see here, carry on. But if Bernanke is not reconfirmed, then as WalStreetPro has said:
- "That would be some hellafied shit, right there!"
Ten days and counting.
-----
Video: Bernanke's economic predicitions -- CNBC montage of failure
-----
A Movement by the People to Prevent Bernanke's Reappointment