1st on Forex: For Your Trading Success by 
The Three Wise Men Spoke The True Issues
But Did Anyone Hear Them?
US Treasury Secretary Paulson, FOMC Chairman Ben Bernanke, and SEC Commissioner Cox took to the hot seat in front of congress Thursday January 14th - but there was no love on Valentines Day for these three scape goats for a financial problem that was truly caused by a lack of of oversight by government regulators that were never seen. Further distressing was that you would never know that the following comments are pressing issues for the United States…
Moments of Truth and Clarity:
Bernanke: Entitlements will take up the entire US Budget by 2030 !!!
Paulson: Yes, There are short terms problems – but there are long term issues that need your attention!!
SEC Secretary Cox: Why are you encouraging spending - instead of saving?
If a Tree Falls in the Forest…
If a Truth is Told - Will the Media Listen? Let alone the three stooges running for president… At least one of them has experience with being tortured! The above comments from the congressional testimony should be bold headlines - but they are not quoted anywhere I can see except right here!
A US Congressman sternly asked Bernanke to react quickly the next time he sees a problem. The fact is that Ben Bernanke should be credited with avoiding a Black Tuesday Jan 22, 2008 with his unscheduled 75 basis point cut. But instead of accolades, a US Congress with nothing better to do than investigate steroid use in baseball chastised these public servants stuck in a no-win situation that regulators should have seen and prevented.
Other highlights of the day include:
Bernanke stated that continuing trouble in the credit markets could trigger more action.
Meanwhile – in New York, the Insurance Commissioner said that there will not be a bailout of Insurers but suggests that splitting Insurance companies into two parts is an option – one with bond policies and another with “troubled structured finance” may be an option. Could this be the next shoe to drop?
Meanwhile - across the pond, European Central Bank’s Weber has made comments stating that Inflation is above the ECB’s stability threshold of 2% and that Interest rate expectations for the ECB to cut rates is “inappropriate” - Rate cut or increase for Euro zone?
As of 12:30 Eastern time – reaction on the currencies was interesting:
The Euro gained from 1.4580 to 1.4640,
The Pound bounced from 1.9860 to a high of 1.9741 and fell back to 1.9690
The Canadian Loonie seems to be grounded near parity fluctuating with a range between 0.9940 and 1.0030
