Why the market always drops when Bernanke speaks
It's kind of a running joke that the market drops every time Fed Chairman Ben Bernanke opens his mouth.
I was reminded of this while watching him on CNBC this week. The sound was off in the office, but I saw a caption along the lines of "Bernanke: there was some 'confusion' over TARP spending."
It finally hit me why the market reacts so negatively to seeing him speak. It's kind of like a father anticipating his daughter's first date. He generally dreads it on principle, but is able to handle it. Then he opens the door and sees the little punk who's going to take her out and can no longer contain himself.
As soon as you see Bernanke talk and realize he's one of the major factors in determining the ongoing health of our economy, you can't find that sell button quick enough.