Actually, in the movie Bill & Ted's Excellent Adventure
, it was Abraham Lincoln who uttered those famous words. But who's keeping track right? The fact is, despite a nasty Consumer Price Index report this morning (core CPI up 0.3% MOM and 2.6% YOY, the worst inflation rate since early 2002), Ben told the market what it wanted to hear -- that inflation is a lagging indicator, that the economy is going to slow, but not too much, that everything will be perfect, rosy and wonderful forever and ever.
Color me skeptical. This is about the 10th "Fed is done" rally in the past year. Maybe the Fed has finished, maybe it hasn't (I'm still in the "hasn't" camp). But the question we should be asking ourselves is "Why does the Fed -- and Bernanke -- have ANY credibility left?"