Damn the torpedoes! Up periscope! Full speed ahead! Ben Bernanke and the Fed to the rescue!
In a startling move Tuesday, the FOMC announced that its zero-interest-rate target would be extended for two more years through the middle of 2013, marking the first time the target rate has ever been pegged to a date certain.
After one of the most vicious market plunges in memory over the past two weeks, stocks soared 429 points on the news. And bond rates plunged, with the 10-year Treasury closing at 2.27 percent.
Forget about S&P downgrades. Forget about the recession threat. The stock market loves Ben Bernanke!
Read my full column here.