For weeks the hype was that the markets were up on anticipation of Bernanke unveiling some new information and/or plans for addressing our dismal economic conditions. Some were hoping for QE3, others that he would take a stand against additional printing of funny money.

In fact, neither one materialized. He basically said nothing and postponed saying anything until the next FOMC meeting in the latter part of September.

Bernanke Says Nothing In August 26th Speech

My take on his silence was that he either doesn’t know what to do or he knows that there is nothing he can do to improve the job picture and economy. Both scenarios should have been extremely negative for the financial markets. He was simply too afraid to voice these facts for fear of a catastrophic financial meltdown.

But the markets chose to take his silence as a positive sign. They interpreted his lack of comments or plans as a sign that he thinks the economy is healthy and needs no additional help. Talk about a stretch of the imagination! What are these folks smoking? What planet are they from?

With this kind of blind faith and enthusiasm we are most certainly headed for hard times. Many of these same people will be standing in the street bewildered and bereft when the financial meltdown hits. They will be asking, How could this have happened? Why didn’t anyone see this coming? Why didn’t anyone warn us?

These folks will be looking to the Federal Government to bail them out which is just what this administration wants.

The slippery slopes of Jackson Hole are nothing compared to the one we’re about to find ourselves riding.