Bernanke calls for tighter control

In an April 9th speech at the 2012 Federal Reserve Bank of Atlanta Markets conference in Stone Mountain, Georgia, Chairman Ben Benanke said, among other things, “our economy is far from having fully recovered…. from the darkest days of the financial crisis.”

Bernanke also was in favor of closer oversight of non bank financial firms.  He noted that currently, some important non bank financial firms which avoided strong comprehensive oversight were significant contributors to the 2008 and 2009  financial crisis.

Bernanke also wants tighter controls of what he referred to as “shadow banking”.   Shadow banking refers to the intermediation of credit through a collection of institutions and markets that lie at least in part, outside of the traditional banking system.

 

Markets remain volatile

The stock market has been on an erratic ride all week since the S & P downgrade.   It appears that the market is very undecided about what is going to happen,  reacting in an amplified manner to any good or bad news this week.    The indexes are using both bad and good news to piggyback on the S & P news to justify it’s fears and concurrently it’s hopes, not having anything solid to base a steady upward or downward slide.

It will take one or two more weeks for it to chart it’s short and medium term course.    Stay tuned while the wild ride continues.