The Fed spoke and they have once again thrown in the kitchen sink. TWIST, QE and EXT (extension) are just some of the reasons for investor optimism. Of course, Bernanke is the master of mis-direction, so there may be more coming out of Europe within a short time that is not going to be agreeable to markets.
Non-the-less, the stage is set for the market to rally, bonds to rally and buyers to step in on the news. Do we have another Tepper moment, or will this be the last gasp before the reality sets in that there is little more room for the Fed to provide any additional accommodation?
Frankly, it is a shame that fiscal policy cannot become more of an important component of any stimulus measures.