"I listened carefully to yesterday's Bernanke speech. He seemed ill at ease and almost stumbling. I truly believe that Bernanke is confused and even frightened by the results of all his manipulations. But what he's most confused about is the poor results he's been getting from both the economy and the markets. Bernanke appears to me to be a man trapped and confused by his own unorthodox tactics." - Richard Russell July 18, 2013

Bernanke is bewildered by the power of the credibility trap, and the ensuing unresponsiveness and inattentiveness of the Federal government to the problems of the people and the real economy. At least that is my opinion, and I could be wrong.

The divergence between finance and the real economy continued. The SP 500 closed at another new high, even as tech floundered due to poor financial results in the leaders.

VIX has now dropped to levels in which it could once again be a productive hedge against a market decline.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In plewis

roviding information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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